Question 1:

ABG Company uses periodic inventories. During June, the following changes in inventory are:

June 1 Balance 1,400 units @ $24

14 Purchased 900 units @ $36

24 Purchased 700 units @ $30

8 Sold 400 units @ $50

10 Sold 1,000 units @ $40

29 Sold 500 units @ $44

Instructions

What is the cost of the ending inventory under the following methods? Show calculations

(a) FIFO.

(b) Average Cost.