Brady Sports began operations on January 2, 2025. The following stock record card for footballs was taken from the records at the end of the year.

A physical inventory on December 31, 2025, reveals that 100 footballs were in stock. The bookkeeper informs you that all the discounts were taken. Assume that Brady Sports uses the invoice price less discount for recording purchases.

Instructions

a. Compute the December 31, 2025, inventory using the FIFO method.

b. Compute the 2025 cost of goods sold using the LIFO method.

c. What method would you recommend to the owner to minimize income  taxes in 2025, using the inventory information for footballs as a guide?

Transcribed Image Text:

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