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4. Assume that Zara Inc. had the following inventory purchases and sales in New York during January 2021. Compute the cost of goods sold and
4. Assume that Zara Inc. had the following inventory purchases and sales in New York during January 2021. Compute the cost of goods sold and the ending inventory using the LIFO method.
- Beginning inventory 20 units at $6 each
- Purchase January 5 30 units at $8 each
- Sale January 8 36 units
- Purchase January 28 16 units at $9 each
Use the above transactional data and show which method among LIFO, FIFO, and Average Cost, could help you prove a healthier after-tax net income.
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