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Question - Freeman Company uses the periodic inventory system. At the end of the annual accounting period, December 31, 2016, the accounting records in inventory showed:
Transactions
Units
Unit Cost
Beginning inventory, Jan. 1, 2016
300
$20
Purchase, Feb. 1
500
21
Purchase, May 15
400
22
Sale, March 15 (sold at $20 each)
(400)
Sale, July 31 (sold at $25 each)
(500)
Required: Determine the amount of the ending inventory and cost of goods sold under each of the following methods assuming the periodic inventory system. To receive partial credit, show calculations.
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