Reference no: EM132998045

West Co. recorded the following inventory information during the month of February:

                                     Units                 Unit cost                  Total cost                      Units on hand

Balance on 2/1             800                  $2                       $1,600                            800

Purchased on 2/8         1,000                   3                       3,000                           1,800

Sold on 2/14                1,500                                                                              300

Purchased on 2/17        2,000                      1                      2,000                        2,300

Sold on 2/23                1,600                                                                              700

Purchased on 2/28            800                        4                      3,200                       1,500

Problem 1: West uses the FIFO method to cost inventory. What amount should West report as cost of goods sold at the end of February under each of the following methods of recording inventory?

       Perpetual             Periodic

A. $3,900                   $3,900

B. $3,900                  $5,900

C. $5,900                 $3,900

D. $5,900                 $5,900