You are provided with the following information for Lahti Inc. for the month ended October 31. 2006. Lahti uses a periodic method for inventory.

Instructions

(a) Calculate (i ) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods.
(1) LIFO.
(2) FIFO.
(3) Average cost.

(b) Compare results for the three cost flow assumptions.

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Date October 1 October 9 Description Beginning inventory Units Unit Cost or Selling Price 60 $25 Purchase 120 26 October 11 Sale 100 35 October 17 Purchase 70 27 October 22 Sale 60 40 October 25 Purchase 80 28 October 29 Sale 150 40