Shellhammer Company's Inventory and Purchases Accounts Show the Following Data

question 180

Essay

Shellhammer Company's inventory and purchases accounts show the following data for the month of September: $\begin{array}{llr}&\text { Units }&\text { Unit Cost }\\\text { Inventory, September 1 } & 100 & \$ 3.34 \\\text { Purchases: September 8 } & 450 & 3.50 \\\text { September 18 } & 350 & 3.70\end{array}$ A physical inventory on September 30 shows 200 units on hand. Calculate the cost of ending inventory and cost of goods sold if the company uses the FIFO method and a periodic inventory system.

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholders from its profits.

Short-term Investments

Financial assets expected to be converted into cash typically within a year, such as stocks or government bonds.

Inventory Turnover

A financial ratio that measures how many times a company's inventory is sold and replaced over a period.

Cost of Goods Sold

Specific expenses directly tied to the production of goods a company markets, such as labor and materials.