Assignment #1 for Chapter 6 worth 60 points YOU MUST SHOW LL YOUR WORK Use Charts provided for this problem PERPETUAL SYSTEM INVENTORY - 40 points The following units of an inventory item were available for sale during the month of June: June 1 Beginning inventory 100 units at $55 June 3 Sold 35 units June 10 purchased 250 units at $60 June 13 Sold 175 units June 20 purchased 30 units at $65 June 28 sold 80 units The firm uses the perpetual inventory system. Items were sold for $80 each Using FIFO OR LIFO method determine COGS, Ending Inventory, and profit 2 Answer the following questions 20 points . Which of the following methods is appropriate for a business whose inventory consists of a relatively small number of unique, high-cost items? Which are the two most widely used methods for determining the cost of inventory? During a period of consistently rising prices, which method of inventory will result in reporting the greatest cost of merchandise sold? Why? Which method has the ending inventory made up of the oldest purchases at the end of a period? If merchandise inventory is being valued at cost and the price level is steadily rising, which method of costing will yield the highest net? Why? CHART COST OF GOODS SOLD PURCHASES BALANCE pate units cost total units cost total Units Cost Totals 8:00-9:00