Question 2 (60 points) Given below is inventory information for the month of July obtained from the records of DOJ Co. PURCHASES Date Description July 1 Beginning Inventory 11 Purchased 20 Purchased Units Unit cost 30 4 80 5 50 6 SALES Date Description Units Unit price July 10 Sold 20 10 15 Sold 50 10 27 Sold 25 10 Required: Compute COGS and ENDING INVENTORY COST under the following cost flow assumptions: a) FIFO - Perpetual Inventory System (25 points) b) AVERAGE - Perpetual Inventory System (25 points) c) Do you agree with the following statement (explain) (10 points) "Eiko and Average Cost methods produce the same results under both Periodic and Perpetual inventory system" Solution a) FIFO - Perpetual DATE PURCHASES Unit Cost Total Cost SALES Unit Cost Total Cost Units Units BALANCE (INVENTORY Units Unit Cost Total Cost 1 10 11 15 20 27 COGS Ending Inventory b) AVERAGE - Perpetual DATE PURCHASES Unit Cost Total Cost SALES Unit Cost Total Cost BALANCE (INVENTORY Units Unit Cost Total Cost Units Units 1 10 11 15 20 27 Ending Inventory COGS c) Do you agree with the following statement (explain) "EiEg and Average Cost methods produce the same results under both Periodic and Perpetual inventory system