S.Claus Company makes toys and gifts. At the beginning of July, it owned 200 gallons of red paint, which were recorded on the balance sheet at $4.00 per gallon. The following events occurred in the...

S.Claus Company makes toys and gifts. At the beginning of July, it owned 200 gallons of red paint, which were recorded on the balance sheet at $4.00 per gallon.
The following events occurred in the next quarter.
1. Purchased 300 gallons on July 1 at $4.05 each.
2. Purchased 700 gallons on August 1 at $4.10 each.
3. Purchased 300 gallons during September at $4.25 each.
4. Used 1,100 gallons during July through September.
Required

Calculate the inventory balance at the end of September and the cost of goods sold during these three months, using AVCO accounting. Which system of inventory accounting is used by S. Claus?