Gabby Company Operates Under a Perpetual Inventory System Determine the Cost of Goods Sold for the Month of on March

Essay

Gabby Company operates under a perpetual inventory system.It began operations on March 1,20X9,and had the following transactions affecting inventory during March,20X9.
$\begin{array}{llll}\text { March 1 } & \text { Purchase } & 500 \text { units @ } \$ 5.00 & \$ 2,500 \\\text { March 5 } & \text { Sale } & 200 \text { units } & \\\text { March 10 } & \text { Purchase } & 300 \text { units @ } \$ 5.20 & \$ 1,560 \\\text { March 15 } & \text { Sale } & 320 \text { units } & \\\text { March } 20 & \text { Purchase } & 400 \text { units } @ \$ 5.40 & \$ 2,160 \\\text { March } 25 & \text { Sale } & 230 \text { units }\end{array}$ Determine the cost of goods sold for the month of March,20X9 and the ending inventory balance at March 31,20X9.Assume the company uses the first-in-first-out (FIFO)cost flow assumption.