Assume that AB Tire Store completed the following perpetual Inventory transactions for a line offres: (Click the icon to view the transactions.) Read the requirants Requirement 1. Compute cost of goods sold and gross profit using the FIFO inventory coating method. Begin by computing the cost of goods sold and cost of ending merchandise Inventory using the FIFO Inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased sold, and on hand at the end of the period. (Enter the oldest inventory layers first) Purchases Cost of Goods Sold Inventory on Hand Unit Total Unit Total Unit Total Date Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost May 1 A More Info - X 26 May 1 Beginning merchandise inventory 11 Purchase 23 Sale 26 Purchase 29 Sale 16 tires 10 tires @ 12 tires 14 tires w 18 tires @ S $ S $ $ 65 cach 78 each 88 each 80 cach 88 each Print Done Totals Compute gross profit using the FIFO inventory costing method Gross profit is using the FIFO inventory coating method. Requirement 2. Compute cost of goods sold and gross profit using the LIFO inventory costing method. Begin by computing the cost of goods sold and cost of ending merchandise inventory using the LIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of che transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) Purchases Cost of Goods Sold Inventory on Hand Unit Total Total Unit Total Unit Cost Date Quantity Cost Cost Quantity Cost Quantity Cost Cost May 1 Totals Compute gross profit using the LIFO inventory costing method. Gross profit is $ D using the LIFO inventory costing method. aivamare omnuto tofaoodacold and aroanrofit oina+baloiabtodvorada nontortina method (Doundoiabtodailoradooootor unit to the nearestant and allotboramountato +bonoaroot dollar Requirement 3. Compute cost of goods sold and gross profit using the weighted average inventory costing method. (Round weighted average cost per unit to the nearest cent and all other amounts to the nearest dollar.) Begin by computing the cost of goods sold and cost of ending merchandise inventory using the weighted-average inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. Purchases Cost of Goods Sold Inventory on Hand Unit Total Unit Total Unit Total Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost Date May 1 || IL 26| 29 Totals Compute gross profit using the weighted average inventory costing method. Gross profit is $ L u sing the weighted-average inventory costing method. Requirement 4. Which method results in the largest gross profit, and why? The method results in the largest gross profit because during times of inventory prices, this method will produce the V cost of goods sold
