Tom Brady Shop began operations on January 2, 2015. The following stock record card for footballs was taken from the records at the end of the year.

A physical inventory on December 31, 2015, reveals that 110 footballs were in stock. The bookkeeper informs you that all the discounts were taken. Assume that Tom Brady Shop uses the invoice price less discount for recording purchases.
Instructions

(a) Compute the December 31, 2015, inventory using the FIFO method. (Round all unit costs to two decimal places.)

(b) Compute the 2015 cost of goods sold using the LIFO method.

(c) What method would you recommend to the owner to minimize income taxes in 2015, using the inventory information for footballs as a guide?

Transcribed Image Text:

Units Unit Invoice Gross Invoice Date Voucher Terms Received Cost Amount 1/15 10624 Net 30 50 $20 $1,000 3/15 11437 1/5, net 30 65 16 1,040 6/20 21332 1/10, net 30 90 15 1,350 9/12 27644 1/10, net 30 84 12 1,008 11/24 31269 1/10, net 30 76 11 836 Totals 365 $5,234