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Question - Inventory - As of 1 September 2016, TradeO, Inc. had a beginning inventory of 200 units at cost of $9 per unit. During September 2016, the following inventory transactions happened:
6 September: bought 300 units of merchandise, at $10 per unit
27 September: bought 350 units of merchandise, at $11 per unit
29 September: sold 650 units of merchandise at customer price of $25 per unit
Required -
(a) Calculate Cost of Goods Sold, Ending Inventory and Gross Profit using FIFO method!
(b) Calculate Cost of Goods Sold, Ending Inventory and Gross Profit using average method!
(c) If you are the CFO of the company, which method you will choose? Explain your reasons!
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