Tall Trees Gear Uses the Periodic Inventory Method and Recorded

Essay

Tall Trees Gear uses the periodic inventory method and recorded the following inventory and purchase transactions for the month of August,20X3.
$$\begin{array} { l l c l } \text { Bate } & \text { Tensection } & \text { Units } & \text { Unit Cost } \\\text { Aug 1 } & \text { Beginning inventory } & 2,800 \text { units } & \text { @\$1.10 } \\\text { Aug 3 } & \text { Purchase } & 500 \text { units } &@ \$ 1.20 \\\text { Aug 10 } & \text { Purchase} & 300 \text { units } & @\$ 1.30 \\\text { Aug 17 } & \text {Purchase } & 400 \text { units } & @\$ 1.40 \\\text { Aug 24 } & \text {Purchase } & 700 \text { units } & @\$ 1.55\end{array}$$ Determine the ending inventory balance at August 31 and the cost of goods sold for the month of August,20X3 for Tall Trees Gear.Tall Trees Gear sold 3,200 units during August,20X3.On August 31,a physical inventory count was conducted,and 1,500 units were on hand.Assume the company uses the last-in-first-out (LIFO)cost flow assumption.