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Question - Elmo's Music carries a large inventory of guitars and other musical instruments. The store uses the FIFO method and a perpetual inventory system. Company records indicate the following for a particular line of guitars that sell for $1,600 each: Date Item Quantity Unit Cost May 1 Balance 5 $900 6 Sale 3 8 Purchase 10 840 17 Sale 4 30 Purchase 5 840
Required - Prepare a perpetual inventory record for the guitars. Then determine the amounts Elmo's Music should report for ending inventory and cost of goods sold under the FIFO method.
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