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

Jefferson Company had the following sales and purchases during 2006, its first year of business.

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Calculate the ending inventory, the cost of goods sold, and the gross profit for the December 31, 2006, financial statements under each of the following assumptions:

a. FIFO periodic

b. LIFO periodic

c. Weighted average cost periodic

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

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January 5 February 15 April 10 June 30 August 15 November 28 Purchased 40 units at $100 each Sold 15 units at $150 each Sold 10 units at $150 each Purchased 30 units at $105 each Sold 25 units at $150 each Purchased 30 units at $110 each