[Question & Answer] Hown below is activity for one of the products of Denver Office Equipment: January 1 balance, 550 units @ $6…..

January 1:

Beginning Inventory = 550 units * $60
Beginning Inventory = $33,000

January 10:

550 units at $65 were purchased.

January 12:

950 units were sold which include 550 units from purchases of January 10 and 400 units from Beginning Inventory

Cost of Goods Sold = 550 * $65 + 400 * $60
Cost of Goods Sold = $59,750

January 20:

1,100 units at $57 were purchased.

January 28:

800 units were sold from purchases of January 20.

Cost of Goods Sold = 800 * $57
Cost of Goods Sold = $45,600

Total Cost of Goods Sold = $59,750 + $45,600
Total Cost of Goods Sold = $105,350

Ending Inventory will include 300 units from January 20 Purchases and 150 units from Beginning Inventory

Ending Inventory = 300 * $57 + 150 * $60
Ending Inventory = $26,100