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Question - Future Phones has been selling cellular phones for the last five years. Its best-selling model is the CD#800, and costs have been falling quickly recently (although selling prices to Future Phone's customers are stable). The following information pertains to the CD#800 inventory for April 2020:
Units Units cost
Opening inventory 400 $5
Purchase 1 240 4
Sale 1 (180)
Purchase 2 440 5.30
Sale 2 (420) -
Ending inventory 480 -
1. If Future Phone uses the FIFO method under a periodic inventory system, what would be the cost of ending inventory for April 2020?
2. If future phone uses the weight-average method under a periodic inventory system, what would be the cost of goods sold for April 2020?
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