Gabby Company Operates Under a Perpetual Inventory System Assume the Company Is Trying to Decide Between the Periodic

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.
$\begin{array}{l}\begin{array}{lll}\text { March 1 } & \text { Purchase } & 500 \text { units@ } \$ 5.00&\$2,500 \\\text { March5 } & \text { Sale } & 200 \text { units } \\\text { March 10 } & \text { Purchase } & 300 \text { units@ } \$ 5.20 &\$1,560\\\text { March 15 } & \text { Sale } & 320 \text { units } \\\text { March20 } & \text { Purchase } & 400 \text { units@ } \$ 5.40 &\$2,160\\\text { Sale } & \text { Sale }&230 \text { units }\end{array}\\\end{array}$ Assume the company is trying to decide between the periodic method and the perpetual method.Gabby has decided to use the last-in-first-out cost flow assumption.Determine the cost of goods sold for the month of March,20X9 and the ending inventory balance at March 31,20X9,using both the perpetual method and the periodic method.