Bristol Sales had the following transactions for DVDs in 2012, its first year of operations. During the

Question:

Bristol Sales had the following transactions for DVDs in 2012, its first year of operations.

During the year, Bristol Sales sold 775 DVDs for $60 each.

Required
a. Compute the amount of ending inventory Bristol would report on the balance sheet, assuming the following cost flow assumptions:
(1) FIFO,
(2) LIFO, and
(3) Weighted average.
b. Compute the difference in gross margin between the FIFO and LIFO cost flowassumptions.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...