The Ginther Power Tools Ltd had 100 air compressors in its 1 January inventory. It uses the perpetual inventory system and the FIFO inventory cost flow assumption. Ginther made the following purchases of air compressors during January and February.

The costs of the 100 air compressors in the 1 January inventory were 20 units @ \(\$ 95\) and 80 units @ \$98. Sales during January and February were 80 air compressors and 100 air compressors respectively.
Required: Calculate the ending inventory and the cost of goods sold for each month.

Transcribed Image Text:

Jan. 10 20 Feb. 5 18 50 air compressors for $100 each 40 air compressors for $102 each 20 air compressors for $104 each 70 air compressors for $108 each