Question - A company has made the following purchases of merchandise during the Month of July:
July 1 purchased 380 units at $15 dollars each
July 5 purchased 270 units at $20 dollars each
July 9 sold 500 units at $55 dollars each
July 14 purchased 300 units at $24 dollars each
July 20 sold 250 units at $55 dollars each
July 30 purchased 250 units at $30 each
Using the purchase information found above, answer the two questions below. As you complete each question, be sure to show the numbers/information you used to reach your final answer.
1. There was no beginning inventory. If the company uses the first-in, first-out method and the perpetual system, what would be the cost of the ending inventory?
2. There was no beginning inventory. If the company uses the last-in, first-out method and the perpetual system, what would be the cost of the ending inventory?