The following is the information for ABC Corporation for the inventory transactions. The company sold 70 units on Jan 31 at $30/unit Unit Cost $10 $11 $12 $13 Date 1-Jan Units 20 25-Jan 26-Jan 40 40 28-Jan 50 a. Calculate the cost of goods sold on January 31, 2020, using the FIFO method b. Calculate the ending inventory using the FIFO method c. Record journal entry for purchase on Jan 28 assuming thatit was a credit purchase d. Record journal entry for sale on Jan 31 assuming thatit was a credit sale

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…