1.	Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the FIFO inventory costing method.
2.	Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the LIFO inventory costing method.
3.	Which method results in a higher cost of goods sold?
4.	Which method results in a higher cost of ending merchandise inventory?
5.	Which method results in a higher gross profit?

Assume that Toys Galore store bought and sold a line of dolls during December as follows (Click the icon to view the transactions.) Toys Galore uses the perpetual inventory system Read the requirements Requirement 1. Compute the cost of goods sold, cost of onding merchandise inventory, and gross profit using the FIFO inventory costing method Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction Onen all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold and on hand at the end of the period. (Enter the oldest inventory layers first.) Purchases Cost of Goods Sold Inventory on Hand Unit Total Unit Total Unit Total Date Cost Cost Quantity Cost Cost Quantity Cost Cost Dec. 1 Quantity Dec. 8 Dec. 14 Dec. 21 O Totals d. ctions in chronological order, calculating new inventory on hand balances after each hand at the end of the period. (Enter the oldest inventory layers first.) More Info Dec. 1 Beginning merchandise inventory 13 units @ $ 9 each 8 Sale 8 units @ $ 22 each 14 Purchase 16 units @ $ 14 each 21 Sale 14 units @ $ 22 each Print Done