(Appendix) Inventory Costing Methods: Periodic Inventory System OBJECTIVE 9 Maidstone Company had 400 units in beginning inventory at a cost of \(\$ 24\) each. Maidstone's 2018 purchases were as follows:

Maidstone uses a periodic inventory system and sold 19,300 units at \(\$ 45\) each during 2018 .
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1. Calculate the cost of ending inventory and the cost of goods sold using the FIFO and weighted average cost methods (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar).
2. Prepare a statement of earnings through gross margin using both of the costing methods in part 1.
3. CONCEPTUAL CONNECTION What is the effect of both inventory costing methods on income?
Exercise

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Date Purchases Feb. 21 July 15 6,100 units at $28 each 5,700 units at $32 cach Sept. 30 7,800 units at $34 each