Reference no: EM132824361

Problem - Lumley Pty Ltd has a perpetual inventory system and sells only one product.

- 80 items of inventory/stock costing $30 each were in the store at the beginning of June.

- 20 more items were purchased for $50 each on the 12th June.

- 90 items were sold for $100 each on the 28th June.

1. Assuming a WEIGHTED AVERAGE system is used for inventory records, what was the cost of goods sold for the 28th June sale?

a. $4,500

b. $2,700

c. $3,060

d. $1,000

e. $9,000

2. Assuming a FIFO system is used for inventory records, what was the cost of goods sold for the 28th June sale?

a. $3,060

b. $2,400

c. $3,100

d. $9,000

e. $2,900