During 2012, Trombley Incorporated has the following inventory transactions.

For the entire year, the company sells 50 units of inventory for $20 each.
Required:
1. Using FIFO, calculate (a) ending inventory, (b) cost of goods sold, (c) sales revenue, and (d) gross profit.
2. Using LIFO, calculate (a) ending inventory, (b) cost of goods sold, (c) sales revenue, and (d) gross profit.
3. Using weighted-average cost, calculate (a) ending inventory, (b) cost of goods sold, (c) sales revenue, and (d) gross profit.
4. Determine which method will result in higher profitability when inventory costs are declining.

Transcribed Image Text:

Number of Units Date Jan. Mar. 4 Jun. 9 Nov. 11 Total Cost $120 165 200 160 $645 Transaction Unit Cost 10 $12 Beginning inventory Purchase Purchase Purchase 20 20 65 10