Date Transaction Number of Units Unit Cost Total Cost January 1...
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Accounting
Date
Transaction
Number of Units
Unit Cost
Total Cost
January 1
Beginning inventory
54
$46
$2,484
April 7
Purchase
134
48
6,432
July 16
Purchase
204
51
10,404
October 6
Purchase
114
52
5,928
506
$25,248
For the entire year, the company sells 440 units of inventory for $64 each.
Required:1-a & b. Using FIFO, calculate ending inventory and cost of goods sold. 1-c & d. Using FIFO, calculate sales revenue and gross profit. 2-a & b. Using LIFO, calculate ending inventory and cost of goods sold. 2-c & d. Using LIFO, calculate sales revenue and gross profit. 3-a & b. Using weighted-average cost, calculate ending inventory and cost of goods sold. 3-c & d. Using weighted-average cost, calculate sales revenue and gross profit. 4. Determine which method will result in higher profitability when inventory costs are rising.
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