The Fancy Phones Company sells phones to business customers. The company began 2009 with 2,000 units of inventory on hand. These units cost $200 each. The following transactions related to the company’s merchandise inventory occurred during the first quarter of 2009:

January 14 .............Purchased 750 units for $225 each

February 13 ...........Purchased 500 units for $175 each

March 30 ..............Purchased 200 units for $205 each

Total purchases ....... 1,450 units

All unit costs include the purchase price and freight charges paid by Fancy Phones. During the quarter ending March 31, 2009, sales totaled 2,500 units, leaving 950 units in ending inventory. Assume Fancy Phones uses a periodic record-keeping system and the weighted average cost flow method.

1. Calculate the cost of goods sold that will appear on Fancy Phone’s income statement for the quarter ending March 31.

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