Question 7 (5 points)

Inventory Costing

The following information relates to the inventory flow of Tom's Sporting Goods:

1 January-beginning inventory is 5 basketball hoops @ $56 each

3 January-purchased 7 basketball hoops @ $58 each

6 January - sold 4 basketball hoops

8 January - purchased 5 basketball hoops @ $44 each

10 January - sold 6 basketball hoops

13 January - sold 7 basketball hoops

Required:

a. Assuming a perpetual inventory system, use the FIFO inventory costing method to calculate the cost of the goods sold at each sale (3 dates).