ProSports Shop began operations on January 2, 2014. The following stock record card for soccer balls was taken from the records at the end of the year.

A physical inventory on December 31, 2014, reveals that 125 were in stock. The bookkeeper informs you that all the discounts were taken. Assume that ProSports Shop uses the invoice price less discount for recording purchases.

Instructions
(a) Compute the December 31, 2014, inventory using the FIFO method.
(b) Compute the 2014 cost of goods sold using the LIFO method.
(c) What method would you recommend to the owner to minimize income taxes in 2014, using the inventory information for soccer balls as aguide?

Transcribed Image Text:

Units Received 100 60 40 180 105 485 Unit Invoice Cost $10 Gross Invoice Amount $1,000 660 520 2,160 1,050 $5,390 Date Voucher 1/6 3/8 7/2 8/5 10624 11437 21332 27644 Terms Net 30 2/10, net 30 1/10, net 30 1/10, net 30 13 12 10/21 31269 2/5, net 30 Totals