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

September 1 September 2 September 5 September 13 September 13 September 19 September 11 September 28 September 28

Sales Purchase Sales Sales Return Purchase Purchase Sales

Sales Return

250 units @ $11.50 each 200 units @ $20 each 500 units @ $10.50 each 600 units @ $19 each 90 units @ $19 each 325 units @ $12 each 450 units @ $10 each 325 units @ $20 each 100 units @ $20 each

Assume that ABC Company follows periodic inventory system.

Required:

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

2. 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)

3. What should be the value of Gross Profit under FIFO, LIFO and Average-cost method? (6 marks)

1. ABC Company is a merchandising company. The following information regarding ABC Company's 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) iii. What should be the value of Gross Profit under FIFO, LIFO and Average-cost method

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