Consider the Following Inventory Information for Last Year The Company Uses a Periodic Inventory System

Essay

Consider the following inventory information for last year:
$$\begin{array} { | l | r | r | } \hline & \text { Number of units } & \text { Cost per unit } \\\hline \text { Beginning inventory, Jan 1 } & 2,500 & \$ 130 \\\hline \text { Purchase, March } & 10,000 & 100 \\\hline \text { Purchase, July } & 5,000 & 90 \\\hline \text { Purchase, October } & 7,500 & 80 \\\hline \text { Goods available for sale } & 25,000 & \\\hline\end{array}$$ The company uses a periodic inventory system. The year-end inventory count indicated 5,300 units left in inventory.
Required:
Using the first-in, first-out (FIFO)method, calculate the ending inventory value and the cost of goods sold for the year.