• Assume our company applies its inventory costing method perpetually at the time of each sale. At the end of the annual
accounting period, December 31, the accounting records provided the following information:
Transactions
a. Inventory, Beginning
For the year:
b. Purchase, April 11
c. Purchase, June 1
d. Sale, May 1 (sold for $40 per unit)
e. Sale, July 3 (sold for $40 per unit)
f. Operating expenses (excluding income tax expense), $595,000
Required:
1- Calculate the cost of ending inventory and
2- the cost of goods sold using the FIFO method.
3- Prepare income statement