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Question - BBM Enterprise Ltd ("BBM") had a beginning inventory balance that consisted of 200 units costing $18 per unit. Purchases and sales are shown in the schedule for the month of March. At the end of the month, BBM conducted a physical count of inventory and confirmed that 250 units were actually on hand at the end of the month. The company uses the periodic inventory system.
Transaction
No. of units.
Unit Cost
1 Mar
Beginning inventory
200
$18.00
7 mar
Purchased
300
$24.00
10 Mar
Sold
350
18 Mar
400
$25.50
24 Mar
Required: Compute and determine the cost of ending inventory and cost of goods sold for the month of March using the following methods.
(i) FIFO.
(ii) Weighted average.
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