QUESTION 3

Shown below is activity for one of the products of Denver Office Equipment:

January 1 balance, 500 units @ $55 $27,500

Purchases:

January 10: 500 units @ $60

January 20: 1,000 units @ $63

Sales:

January 12: 800 units

January 28: 750 units

Required:

Compute the ending inventory and cost of goods sold assuming Denver uses

FIFO,

LIFO and a perpetual inventory system,

average cost and a periodic inventory system, and

average cost and a perpetual inventory system.