(Calculating cost of sales and ending inventory using average cost, FIFO, and LIFO cost flow assumptions, LO 1, 2) Adamo Limited (AL) is a wholesaler of machine parts. Jacob Avery recently purchased AL. Previously Mr. Avery was an employee of AL. Mr. Avery 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 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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Inventory Information for Part 17592a Selling Number Date of Cost price of units purchase/sale per unit per unit Opening inventory 125 units various $26.00 Purchase 100 units Nov. 10 $27.00 Sale 80 units Nov. 12 $60.00 Purchase 75 units Nov. 20 $27.50 Sale 160 units Nov. 22 $60.00 Purchase 90 units Nov. 25 $27.75