Question - FVE Ltd is a wholesale distribution firm which has provided you with the following information in relation to a particular product, QS11, for the month of March 20X1. The company uses the perpetual inventory system.
|
Date
|
Transaction
|
No. of units
|
Unit cost
|
|
1-Mar
|
Beginning inventory
|
150
|
$9.00
|
|
5-Mar
|
Purchased
|
200
|
$10.00
|
|
11-Mar
|
Purchased
|
100
|
$10.50
|
|
15-Mar
|
|
Sold
|
400
|
|
|
|
22-Mar
|
Purchased
|
300
|
$11.50
|
|
26-Mar
|
|
Sold
|
250
|
|
|
Required: Determine the cost of goods sold and the costs of ending inventory for the month of March using the following inventory costing methods (where necessary, please round your final answer to the nearest cents):
(a) First-in, first out (FIFO) method.
(b) Average cost method.