Question 3

A company made the following merchandise purchases and sales during the month of May with the assumption that there was no beginning inventory:

Date	Activities	Units Acquired at Cost	Units Sold at Retail
1 May	Purchased	300 units at RM15/unit
3 May	Purchased	270 units at RM20/unit
8 May	Sold		500 units at RM55/unit
12 May	Purchased	300 units at RM24/unit
14 May	Sold		250 units at RM55/unit
23 May	Purchases	250 units at RM30/unit
25 May	Purchases	800 units at RM25/unit
31 May	Sales		900 units at RM55/unit

Required:

1. Compute the value of the inventory as at 31 May 2021 by using the f i rst- in, f i rst out ( FIFO) method. (13 marks)
2. State the value of purchases, cost of goods sold and sales. (2 marks)