Question 2. (60 points) Given below is inventory information for the month of July obtained from the records of Green Co. PURCHASES Date Description July 1 Beginning Inventory 11 Purchased 20 Purchased Unit cost 10 Units 40 80 30 SALES Date Description Units Unit price July 10 Sold 30 30 15 Sold 50 30 27 Sold 20 30 12 15 Required: Compute COGS and ENDING INVENTORY COST under the following cost flow assumptions: a) FIFO - Perpetual Inventory System (25 points) b) AVERAGE - Perpetual Inventory System (25 points) c) Do you agree with the following statement (explain) (10 points) "Average Cost methods produce the same results under both Periodic and Perpetual inventory system" Solution a) FIFO - Perpetual SALES DATE PURCHASES Unit Cost Total Cost BALANCE (INVENTORY) Units Unit Cost Total Cost Units Units Unit Cost Total Cost 1 10 11 15 20 27 COGS = Ending Inventory = ACT 410-Intermediate Accounting / - Spring 2020-11 Page 34 Individual Assignment 4 (15%) b) AVERAGE - Perpetual PURCHASES SALES DATE BALANCE (INVENTORY) Units Unit Cost Total Cost Units Unit Cost Total Cost Units Unit Cost Total Cost 1 10 11 15 20 27 Ending Inventory = COGS = c) Do you agree with the following statement (explain) "Average Cost methods produce the same results under both Periodic and Perpetual inventory system