Reference no: EM131719876

Question - On December 1, 2014, Seattle Company had the account balances shown below.

	Debits		Credits
Cash	$6,980	Accumulated Depreciation-Equipment	$1,330
Accounts Receivable	3,880	Accounts Payable	2,860
Inventory (3,400 x $0.64)	2,176	Common Stock	21,900
Equipment	20,800	Retained Earnings	7,746
	$33,836		$33,836

The following transactions occurred during December.

Dec. 3 Purchased 4,600 units of inventory on account at a cost of $0.74 per unit.

Dec. 5 Sold 4,900 units of inventory on account for $0.89 per unit. (It sold 3,400 of the $0.64 units and 1,500 of the $0.74.)

Dec. 7 Granted the December 5 customer $89 credit for 100 units of inventory returned costing $120. These units were returned to inventory.

Dec. 17 Purchased 2,200 units of inventory for cash at $0.79 each.

Dec. 22 Sold 2,000 units of inventory on account for $0.94 per unit. (It sold 2,000 of the $0.74 units.)

Adjustment data:

1. Accrued salaries and wages payable $340.

2. Depreciation on equipment $110 per month.

Compute ending inventory and cost of goods sold under FIFO, assuming Seattle Company uses the periodic inventory system.