1. Sam’s Club is a merchandising entity; on October 1st, they purchased goods from a company for $22,000 with terms of freight on board (FOB) shipping point, 3/10, n/EOM, Sam’s Club paid 30% of the amount due on October 5th, another 30% on October 9th, and the remaining amount on October 14th. What is the recorded value of goods in Sam’s Club Merchandise inventory account?
2. Starbucks uses a perpetual inventory system following LIFO. On September 1st, the company had 50 bikes in inventory, which they had purchased at $50/unit. On September 6th, they purchased 50 bikes at $80/unit. On September 9th, they sold 75 bikes at $150/unit. What should Starbucks report as COGS?