60.1K

Verified Solution

Link Copied!

Homework: Chapter 6 Homework Question 4, P6A-37B (bo... Part 1 of 6 HW Score: 15%, 3 of 20 points O Points: 0 of 6 Save Right Now Electronic Center began October with 100 units of merchandise inventory that cost $70 each. During October, the store made the following purchases: (Click the icon to view the purchases.) Right Now uses the periodic inventory system, and the physical count at October 31 indicates that 130 units of merchandise inventory are on hand. Read the requirements Requirement 1. Determine the ending merchandise inventory and cost of goods sold amounts for the October financial statements using the FIFO, LIFO, and weightec-average inventory costing methods. FIFO Ending inventory Cost goods sold - X Data Table Requirements 1. Oct. 3 Oct. 12 35 units @ $82 each 45 units @ $84 each 75 units $90 each Determine the ending merchandise inventory and cost of goods sold amounts for the October financial statements using the FIFO, LIFO, and weighted-average inventory costing methods. 2. Sales revenue for October totaled S26,000. Compute Right Now's gross profit for October using each method. 3. Which method will result in the lowest income taxes for Right Now? Why? Which method will result in the highest net income for Right Now? Why? Oct. 18 Print Done 0 Print Done

Answer & Explanation Solved by verified expert

See Answer