Assume that ET Tire Store completed the following perpetual inventory transactions for a line of tires:

Requirements 

1. Compute cost of goods sold and gross profit using the FIFO inventory costing method.
2. Compute cost of goods sold and gross profit using the LIFO inventory costing method.
3. Compute cost of goods sold and gross profit using the weighted-average inventory costing method. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.)
4. Which method results in the largest gross profit, and why?

Transcribed Image Text:

May 1 Beginning merchandise inventory 11 Purchase 23 Sale 26 Purchase 29 Sale 16 tires @ $ 65 each 10 tires @ $ 78 each 12 tires @ $ 90 each 14 tires @ $ 80 each 15 tires @ $90 each