Bob’s Barber Supplies sells hair clippers to local businesses. The company began the first quarter of the year January 1, 2009, with 1,000 units of inventory on hand. These units cost $50 each. The following transactions related to the company’s merchandise inventory occurred during the first quarter of 2009:

January 12 Sold 800 units for $75 each

January 20 Purchased 500 units for $45 each

February 8 Sold 400 units for $75 each

March 5 Purchased 600 units for $60 each

March 19 Sold 500 units for $75 each

Assume the company uses a perpetual record-keeping system and the weighted average cost flow method.

1. Calculate the cost of goods sold that will appear on the income statement for the quarter ending March 31, 2009.

2. Determine the cost of inventory that will appear on the balance sheet at the end of March.