Q#3

Rao Company uses a perpetual inventory system. The company has the same inventory, purchases, and sales data for the month of March as shown earlier:

Inventory: March 1 200 units @ $4.00 $ 800

Purchases: March 10 500 units @ $4.50 2,250

March 20 400 units @ $4.75 1,900

March 30 300 units @ $5.00 1,500

Sales: March 15 500 units

March 25 400 units

The physical inventory count on March 31 shows 500 units on hand.

Instructions

Under a perpetual inventory system, determine the cost of inventory on hand at March 31 and the cost of goods sold for March under (a) FIFO, (b) LIFO, and (c) moving-average cost.