Calculate cost of goods sold and ending inventory and analyze effect of each method on the financial statements. (LO 3, 4)

Washington Company had the following sales and purchases during 2009, its first year of business.

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a. Calculate the ending inventory, the cost of goods sold, and the gross profit for the December 31, 2009, financial statements under each of the following assumptions:
1. FIFO periodic 2. LIFO periodic 3. Weighted average cost periodic

b. How will the differences between the methods affect the income statement and balance sheet for the year?

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January 8 February 20 April 13 June 28 August 2 November 24 Purchased 125 units at $100 each Sold 75 units at $150 each Sold 35 units at $150) cach Purchased 235 units at $105 each Sold 175 units at $150 each Purchased 140 units at $110 cach