PSA $9-4$ Determine the Cost of Goods Sold and the Merchandise Inventory Balance #$1$

Metalworks Inc. sells office furniture to corporate customers. The company uses the perpetual inventory system and keeps careful records. The August purchases and sales of

merchandise inventory are summarized here $($note that the sales price on $\frac{8}{10}$ and $\frac{8}{26}$ was $$195$ per unit$).$

Calculate the total cost of goods sold for the month $($hint: $\frac{8}{10}$ cost of goods sold $+\frac{8}{26}$ cost of goods sold$)$ and the Merchandise Inventory balance at the end of the month using

three methods:

FIFO

LIFO

Average cost

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FIFO Method: