QUESTION - SK Marine sells high-performance marine equipment to power boat owners. Apollo Outboard recently introduced the world's first 400 horsepower outboard motor. SK purchased 8 of these motors during the current year to resell to customers. The purchases were made as follows:

PURCHASE DATE                               #UNITS       UNIT COST   TOTAL COST

July 2                                                    2               $4,450                  $ 8,900

July 22                                                   3                4,600                   13,800

Aug. 3                                                  3                  4,700                   14,100

Available for sale during the year            8                                            $36,800

On July 28, SK sold 4 of these motors. The other 4 motors remained in inventory at September 30, the end of SK's fiscal year. SK Marine uses a perpetual inventory system.

REQUIRED: Compute (using each of the assumptions in the table below)

a) the cost of goods sold relating to the sale.

b) the cost of ending inventory of the above motors at September 30.