1. A had 500 units in its inventory at a cost of $5 each. if purchased, for $2400, 300 more units. A then sold 600 units at a selling price of $10 each, resulting in gross profit of $2,100. What cost flow assumption was used?
2. End of the year physical inventory determined that $760,000 of goods were on hand. The following items were not in physical count: $96,000 of the goods were in transit shipped FOB destination ( recieved 3 days after inventory count). The company then sold $40,000 worth of inventory FOB destination. What is the inventory at the end of the year?