The Hub specializes in men's shirts. The store began operations on January 1, 19X1, with an inventory of 200 shirts that cost \(\$ 13\) each. During the year the store purchased inventory as follows:

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1. Complete the following tabulation, rounding average cost to the nearest cent and all other amounts to the nearest dollar.

2. Compute the amount of inventory profit under FIFO.
3. Which method produces the most current ending inventory cost? Which method produces the most current cost-of-goods-sold amount? Give the reason for your answers.
Preparing an income statement directly from the accounts \((O b j .2,3)\)
Converting an actual company's reported income from the LIFO basis to the FIFO basis (Obj. 4)

Transcribed Image Text:

Purchase Purchase no. 2 no......... 110 @ $14 80 @ 15 Purchase no. 3 320 @ 15 Purchase no. 4. 100 @ 17