Bravo Wholesalers, Inc., began its business on January 1, 2017. Information on its inventory purchases and sales during 2017 follows:

Required:
1. Compute the cost of ending inventory and cost of goods sold under each of the following methods:
(a) FIFO,
(b) Weighted average cost,
(c) LIFO. Assume that Bravo uses the periodic inventory method.
2. Assume that Bravo uses the periodic LIFO method.
a. Calculate the replacement cost of the ending inventory and the LIFO reserve as of year-end. You may assume that year-end purchase cost was still $6.10 per unit.
b. Estimate Bravo's cost of goods sold under the periodic FIFO method based only on the information that will be publicly available to Bravo's investors. Explain why your answer differs from FIFO cost of goods sold computed in requirement 1.
c. Bravo's purchasing manager was planning to acquire 10,000 units of inventory on January 5, 2018, at $6.10 per unit. Its accountant suggests that the company will be better off if it acquires the inventory instead on December 31, 2017. What are the pros and cons of the accountant's suggestion? Wherever possible, show supporting calculations.
3. Calculate the cost of goods sold assuming that Bravo uses
(a) The perpetual FIFO method;
(b) The perpetual weighted average method.

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Inventory Purchases Units Cost per Unit Total January 1 March 10 April 15 September 11 November 12 December 1 December 29 Units available for sale 8,000 10,000 12,000 10,000 6,000 7,500 6,500 60,000 $5.00 5.10 5.30 5.55 5.75 5.85 6.10 $ 40,000 51,000 63,600 55,500 34,500 43,875 39,650 $ 328,125 Inventory Sales Units Price per Unit $9.00 9.50 10.00 Total March 3 September 2 December 5 Units sold 6,000 24,000 10,000 40,000 54,000 228,000 100,000 $382,000