Adamo Limited (AL) is a wholesaler of machine parts. Jacob Avery, an employee of AL, recently purchased AL from the original owner, Mr. Adam, who is retiring. Mr. Avery has come to you for advice on how to calculate ending inventory and cost of goods sold. He has asked you to explain your reasoning for any choices you make. Mr. Avery provided you with the following example of his inventory costs using Part 17592a.

Required

Calculate ending inventory as at November 30 and cost of goods sold for Part 17592a for November. Provide the explanations requested by Mr. Avery.

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Number Inventory Information for Part 17592a Date of Cost per Selling price of units purchase/sale unit per unit Opening inventory 150 units Various $4.00 Purchase 100 units Nov. 10 4.50 Sale 200 units Nov. 12 $11.00 Purchase 175 units Nov. 20 4.70 Sale 340 units Nov. 22 11.00 Purchase 180 units Nov. 25 4.95