Assume Box Office uses a perpetual recordkeeping system and the FIFO cost flow method.
1. Calculate the cost of goods sold that will appear on the income statement for the month of August.
2. Determine the cost of inventory that will appear on the balance sheet at the end of August.
Box Office Projectors began the month of August with three movie projectors in inventory, each unit costing $350. During August, eight additional projectors of the same model were purchased.
August 11 ........ Purchased four units at $400 each
August 13 ........ Sold five units at $425 each
August 14 ........ Purchased three units at $375
August 18 ........ Sold two units at $425 each
August 21 ........ Sold three units at $425 each
August 26 ........ Purchased one unit at $380