$1$

Mojo Industries tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the accounting period, January $31.$ The inventory's selling price is $$12$ per unit.

Required:

Compute the amount of goods available for sale, ending inventory, and cost of goods sold at January $31$ under each of the following inventory costing methods:

a$.$ Weighted average cost.

b$.$ First$-$in$,$ first$-$out

c$.$ Last$-$in$,$ first$-$out

d$.$ Specific identification, assuming that the January $10$ sale was from the beginning inventory and the January $17$ sale was from the January $12$ purchase

$2-$a$.$ Of the four methods, which will result in the highest gross profit?

$2-$b$.$ Of the four methods, which will result in the lowest income taxes?

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2A$

Req $2B$

Compute the amount of goods available for sale, ending inventory, and cost of goods sold at January $31$ under each of the amount.$)$