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A new company is deciding whether to use the weighted average inventory costing method or the FIFO costing method. Under the weighted average method, the
A new company is deciding whether to use the weighted average inventory costing method or the FIFO costing method. Under the weighted average method, the $25,000 of goods available for sale would be allocated with $18,200 to cost of goods sold and $6,800 to ending inventory. If the company uses the FIFO inventory costing method, $18,500 would be allocated to cost of goods sold and $6,500 to ending inventory. If bonuses are 10% of profit, which method will produce a higher bonus? O FIFO by $30 O neither, both methods produce the same bonus O weighted average by $300 O weighted average by $30
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