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2-a. Of the four methods, which will result in the highest gross profit? a - Weighted average cost b. first in, first out c. last

image text in transcribed2-a. Of the four methods, which will result in the highest gross profit?

a - Weighted average cost

b. first in, first out

c. last in, first out

d. specific identification

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

a - Weighted average cost

b. first in, first out

c. last in, first out

d. specific identification

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 $16 per unit. Unit Cost Units Total Cost Transactions $6.00 310 $1,860 Inventory, January 1 Sale, January 10 (260) Purchase, January 12 6.50 360 2,340 Sale, January 17 (160) 7.50 600 Purchase, January 26 80 Assuming that for Specific identification method (item 1d) the January 10 sale was from the beginning inventory and the January 17 sale was from the January 12 purchase. Required: 1. 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: (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) Amount of Goods Cost of Goods Available for sale Ending Inventory Sold a. Weighted average cost b. First-in, first-out C. Last-in, first-out d. Specific identification

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