Use the Information That Follows Concerning Yarley's Gift Store to Answer

question 21

Essay

Use the information that follows concerning Yarley's Gift Store to answer problems
Grandma's Gift Store uses the periodic inventory method. nventory and purchase information for July is as follows:
$\begin{array}{llc}\text { July 1 } & \text { Beginning inventory } & 500 @ \$ 4 \\\text { July 10 } & \text { Purchase } & 800 @ \$ 5 \\\text { July 31 } & \text { Ending inventory } & 300\end{array}$

-Grandma's Gift Store uses the LIFO cost flow assumption. Calculate its cost of goods sold for July and its ending inventory at July 31.

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Definitions:

Activity-Based Costing

A method of allocating costs to products and services based on the activities they require.

Activity Cost Pools

Groups of costs categorized based on the activities that incur the cost, used in activity-based costing.

Machine-Hours

A measure used in accounting to allocate manufacturing overhead costs to each unit of production, representing the number of hours a machine is operated.

Batches

Quantities of goods or materials processed or produced at one time during manufacturing.