Detailed comparison of various choices for inventory accounting. Burton Corporation commenced retailing operations on January 1, Year 1. Purchases of merchandise inventory during Year 1 and Year 2 appear below:

Burton Corporation sold 1,000 units during Year 1 and 1,500 units during Year 2.

a. Calculate the cost of goods sold for Year 1 using a FIFO cost flow assumption.

b. Calculate the cost of goods sold for Year 1 using a LIFO cost flow assumption.

c. Calculate the cost of goods sold for Year 1 using a weighted-average cost flow assumption.

d. Calculate the cost of goods sold for Year 2 using a FIFO cost flow assumption.

e. Calculate the cost of goods sold for Year 2 using a LIFO cost flow assumption.

f. Calculate the cost of goods sold for Year 2 using a weighted-average cost flow assumption.
g. Will FIFO or LIFO result in reporting the larger net income for Year 1? Explain.
h. Will FIFO or LIFO result in reporting the larger net income for Year 2? Explain.

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1/10/Year 1 6/30/Year 1 10/20/Year 1 Total Year 1 2/18/Year 2 7/15/Year 2 12/15/Year 2 Total Year 2 .... Quantity Purchased Unit Price Acquisition Cost 600 $10 $ 6,000 200 12 2,400 400 15 6,000 1,200 $14,400 Quantity Purchased Unit Price Acquisition Cost 500 $14 500 12 800 10 1,800 $ 7,000 6,000 8,000 $21,000