Morrison Corporation, Which Uses a Perpetual Inventory System, Recorded the Following

Essay

Morrison Corporation, which uses a perpetual inventory system, recorded the following inventory transactions during the last two months of 2013. $$\begin{array} { | l | l | r | r | r | r | } \hline & & & \text { Purchases } & & \text { Sales } \\\hline & & \text { Units } & \text { Unit Cost } & \text { Units } & \text { Selling price/unit } \\\hline \text { Nov. 1 } & \text { Beginning inventory } & 112 & \$ 72 & & \\\hline 13 & \text { Purchase } & 76 & \$ 71 & & \\\hline 29 & \text { Sale } & & & 121 & \$ 99 \\\hline \text { Dec 3. } & \text { Purchase } & 56 & \$ 69 & &\\\hline 16 & \text { Sale } & & & 67 & \text { \$98 } \\\hline\end{array}$$ Requirements: (a) Using the FIFO cost formula, calculate the amount of cost of goods sold for the two months of November and December. (Show calculations) (b) Using the average cost formula, calculate the amount of ending inventory at December 31. (Show calculations)