Question 4

ABC Appliance Shop Inc. has the following data for inventory, purchases, and sales of merchandise for December for one of the items the company sells:

Activity Units Purchase Price (per unit) Sale Price (per unit)

Beginning inventory 44 $80.00

Purchase 1, Dec. 4 27 91.00

Sale 1, Dec. 8 18 $150.00

Sale 2, Dec. 10 13 $110.00

Purchase 2, Dec. 17 16 92.00

Sale 3, Dec. 20 14 $140.00

ABC Appliance Shop Inc. uses a perpetual inventory system. All purchases and sales were for cash.

Required:

1. Compute cost of goods sold under the FIFO method.

2. Cost of ending inventory using the FIFO method.