$35 $36 Problem 4.3 Baseball Equipment, Inc. sells several lines of baseball equipment including baseball gloves. The following information is available on the purchase and sale of one line of baseball gloves during the year ended December 31, 20X7: # of Gloves Cost/glove Total Cost 1/1/X7 Beginning inventory 100 $33 $3,300 Purchases: $1,400 March 5, 20X7 $2,160 April 1, 20X7 July 11, 20X7 ........ $38 $1,900 September 16, 20X7 .......... $39 $2,730 December 1, 20X7. $41 $3,280 December 15, 20X7 $43 $215 Total available for sale ...... 405 $14,985 Sales during 20X7 ............... 295 12/31/X7 Ending inventory ........ 110 The selling price per glove was $65. On May 1, 20X7, 190 gloves were sold. On December 2, 20X7, 105 gloves were sold. Baseball Equipment, Inc. uses a periodic inventory system. a) Compute the cost of goods sold during 20X7 and the December 31, 20X7 inventory balance under each of the following cost flow assumptions: 1) Last-in, first-out (LIFO). 2) First-in, first-out (FIFO). 3) Weighted average. b) Determine gross profit under each of the following cost flow assumptions: 1) Last-in, first-out (LIFO). 2) First-in, first-out (FIFO) 3) Weighted average