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1. ABC Company is a merchandising company. The following information regarding ABC Companys inventories are...

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Accounting

1. ABC Company is a merchandising company. The following information regarding ABC Companys inventories are available:

September 1 250 units @ $11.50 each

September 2 Sales 200 units @ $20 each

September 5 Purchase 500 units @ $10.50 each

September 13 Sales 600 units @ $19 each

September 13 Sales Return 90 units @ $19 each

September 19 Purchase 325 units @ $12 each

September 11 Purchase 450 units @ $10 each

September 28 Sales 325 units @ $20 each

September 28 Sales Return 100 units @ $20 each

Assume that ABC Company follows periodic inventory system.

Required: i. Calculate the value of ending inventory in units for the month of September. (2 marks).

ii. Calculate the cost of inventory on September 30, the cost of goods sold for the month of September under FIFO, LIFO and Average-cost method. (9 marks) Page 1 of 4 SHA1 iii. What should be the value of Gross Profit under FIFO, LIFO and Average-cost method? (6 marks).

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