Question - Beginning inventory, purchases and sales data for tennis rackets are as follows: Apr 3 Inventory 12 units @ $45 11 Purchase 13 units @ $47 14 Sale 18 units 21 Purchase 9 units @ $60 25 Sale 10 units . Assuming the business maintains a perpetual inventory system, calculate the cost of merchandise sold and ending inventory under First-in, first-out:
1. Cost of merchandise sold $1,151; ending inventory $180
2. Cost of merchandise sold $180; ending inventory $1,151
3. Cost of merchandise sold $1,331; ending inventory $360
4. Cost of merchandise sold $360; ending inventory $1,331