Sunland Company uses a periodic inventory system. For April, when the company sold 550 units, the following information is available. April 1 inventory April 15 purchase April 23 purchase Ending inventory Units Cost of goods sold 340 390 270 1,000 Unit Cost $23 28 30 $enter a dollar amount Total Cost $enter a dollar amount $ 7,820 Compute the April 30 inventory and the April cost of goods sold using the FIFO method. 10,920 8,100 $26,840

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in…