7. Inventory Costing

A company uses the periodic inventory system to account for inventories. Information related to the company’s inventory for the month of October is given below:

Date	Units	Unit Cost	Total Cost
Beginning	150	2.20	330
Oct. 2	600	2.40	1,440
Oct. 10	500	2.50	1,250
Oct. 17	500	2.60	1,300
Oct. 28	700	2.70	1,890

During October the company sold 1,400 units at $6.00 per unit.

1. Determine the value of Cost of Goods Sold using the Average Cost Method of inventory valuation.
   • $2,661
   • $3,472
   • $3,690
   • $3,548
2. Determine Gross Profit for the month of October using the FIFO cost assumption.
   • $4,990
   • $4,710
   • $5,600
   • $3,410
3. Determine Ending Inventory using the LIFO cost assumption
   • $2,800
   • $3,410
   • $2,520
   • $,3690