Q1: ABC Company's inventory records show the following data: (under periodic inventory system) Units Units cost Total July 1 Beginning Inventory 25 21 525 July 7 Purchases 80 23 1840 July 22 Purchases 15 24 Total Goods available for sales 120 2725 360 A physical count of merchandise inventory on July 31 reveals that there are 40 units on hand (ending inventory 30 unit) Using the average-cost method and FIFO to calculate the value of ending inventory: Using the FIFO and average cost inventory method, the amount allocated to cost of goods sold for July is