Reword the following answer: **a) FIFO (First-In, First-Out) Method** Under the FIFO method, the earliest goods purchased (the first goods in) are the first ones sold. For the cost of goods sold (COGS), the calculations would be as follows: - 500 units sold on April 15 = 200 units @$4.00 each (from April 1 inventory) + 300 units @$4.50 each (from April 10 purchase) COGS (April 15) = 200 * $4 + 300 * $4.50 = $1,950 - 400 units sold on April 25 = 400 units @$4.50 each (remaining from April 10 purchase) COGS (April 25) = 400 * $4.50 = $1,800 Total COGS = COGS (April 15) + COGS (April 25) = $1,950 + $1,800 = $3,750 The inventory left at the end of April would be: - All 400 units from the April 20 purchase @$4.75 each (none of these were sold) - All 300 units from the April 30 purchase @$5.00 each (none of these were sold) Inventory left: 400 * $4.75 + 300 * $5 = $1,900 + $1,500 = $3,400 **b) Average-Cost Method** Under the average-cost method, the total cost of units available for sale is divided by the total units available for sale to determine a weighted-size average cost per unit. Average cost per unit = Total costs of goods available for sale / Total units available for sale The total costs of goods available for sale = opening stock worth + purchases in April = $800 + $2,250 + 1,900 + $1,500 = $6,450 The total units for sale = initial 200 units + purchases of 1,200 units (500 from April 10, 400 from April 20, and 300 from April 30) = 1,400 units Average cost per unit = $6,450 / 1,400 = $4.61 (rounded to nearest cent) The COGS will be the cost per unit