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

FIFO

"First In, First Out," an inventory valuation method where items produced or acquired first are sold, used, or disposed of first.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made at specific intervals, and cost of goods sold is calculated at the end of an accounting period.

Ending Inventory

The worth of products ready to be sold at the closure of a financial period, determined by adding the initial inventory to purchases and subtracting the cost of goods sold.