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During the year, Hooker Incorporated has the following inventory transactions.
Date Transaction Number of Units Unit Cost Total Cost
January Beginning inventory $ $
March Purchase
June Purchase
November Purchase
$
For the entire year, the company sells units of inventory for $ each.
Required:
a & b Using FIFO, calculate ending inventory and cost of goods sold.
c & d Using FIFO, calculate sales revenue and gross profit.
a & b Using LIFO, calculate ending inventory and cost of goods sold.
c & d Using LIFO, calculate sales revenue and gross profit.
a & b Using weightedaverage cost, calculate ending inventory and cost of goods sold.
c & d Using weightedaverage cost, calculate sales revenue and gross profit.
Determine which method will result in higher profitability when inventory costs are declining.
