James Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product...
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James Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows: Balance at 1 December 2020 160 units @$10 per unit. Purchase on Dec 20 140 units at total costs of $1820. Purchase on Dec 25 230 units at total cost of $3450. On 24 Dec, James Inc. sold 250 units of this product. i.) Calculate the cost of goods sold based on the assumption of using: a.) FIFO (2 marks) b.) LIFO (2 marks) c.) Average cost (2 marks) ii.) Calculate the inventory values at January 31 assuming Bond uses: a. FIFO (1 mark) b. LIFO (1 mark)
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