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Delta company uses the periodic inventory system. The beginning balance of inventory and subsequent inventory purchases made by the company during the month of July 2019 are given below:
July 01: Beginning inventory, 500 units @ $12 per unit.
July 18: Inventory purchased, 850 units @ $20 per unit.
July 25: Inventory purchased, 700 units @ $22 per unit.
The Delta company sold 1,300 units during the month of July.
Required:
Question 1: Compute the cost of goods sold and ending inventory on July 31, 2019 using the following inventory costing methods:
1. First in, first out (FIFO) method
2. Weighted Average cost method
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