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Question: 1) The Trinh Corporation had 2,000 cages on hand at the beginning of December. Each cage had cost the company $22. The company purchased 6,000 cages on December 10 at a cost of $24 each. The company purchased 7,000 cages on December 23 at a cost of $25 each. The company sold 4,000 cages on December 13 and 8,000 cages on December 24. The company charged its customers $50 per cage for each cage sold in December. The company uses the FIFO inventory method.
Determine the company's cost of merchandise inventory on hand at the end of December.
2) The Rebekah Corporation had 4,000 lamps on hand at the beginning of January. Each lamp had cost the company $15. The company purchased 14,000 lamps during January at a cost of $15 each. The company's inspection of its purchases revealed 50 defective lamps, which the company returned to its supplier for full credit of $15 each. The company sold 16,000 lamps during January and charged its customers $26 per lamp. The company's January operating expenses were $70,000. The company's expected income tax expense was $38,000.
Determine the company's cost of goods sold for January.
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