Richardson Ltd Requirements: (A) Using the FIFO Cost Formula, Calculate the Amount

Essay

Richardson Ltd. sells many products. Hela is one of its popular items. Below is an analysis of the inventory purchases and sales of Hela for the month of March. Richardson uses the perpetual inventory system. $$\begin{array} { | l | l | r | r | r | r | } \hline & & & \text { Purchases } & &\text { Sales } \\\hline & & \text { Units } & \text { Unit Cost } & \text { Units } & \text { Selling } \\\hline \text { March } 1 & \text { Beginning inventory } & 200 & \$ 60 & & \\\hline 3 & \text { Purchase } & 60 & 75 & & \\\hline 4 & \text { Sales } & & & 70 & \$ 120 \\\hline 10 & \text { Purchase } & 200 & 82 & & \\\hline 16 & \text { Sales } & & & 80 & 130 \\\hline 19 & \text { Sales } & & & 80 & 130 \\\hline 25 & \text { Sales } & & & 50 &130 \\\hline 30 & \text { Purchase } & 40 & 90 & & \\\hline\end{array}$$ Requirements: (a) Using the FIFO cost formula, calculate the amount of the cost of goods sold for March. (Show calculations) (b) Using the average cost formula, calculate the amount of the ending inventory on March 31. (Show calculations)