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Asume that Models and More store bought and sold a line of dolis during December as follows the con to view the transactions Models and

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Asume that Models and More store bought and sold a line of dolis during December as follows the con to view the transactions Models and More comes the perpetual inventory Read the resultsmants. Requirement 1. Compute the cou of goods sold cost of ending methandie Inventory and from proft using the FIFO inventory Couting 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 for each traction Once of the transactions have been entered into the perpetual record calculate the quantity and total cost of merchandise any purchased sold and on and on and of the pood the oldest wwentory layers Purchase Cost of Goods Sold Inventory on Hand Unit Total Unit Total Unit Total Date Cost Cor Quantity Cost Com Quar Cost Cost Doc. Dec Dec 1 Enter any number teens and then continue to the next question Purchases Cost of Goods Sold Total Unit Total Unit Cost Inventory on Hand Unit Total Quantity Cost Cost Cost Quantity Cost Cost Date Quantity Dec. 1 Dec. 8 Dec. 14 Dec. 21 Totals Purchases Cost of Goods Sold Unit Total Unit Total Inventory on Hand Unit Total Quantity Cost Cost Date Quantity Cost Cost Quantity Cost Cost Dec. 1 Dec. 8 Dec. 14 Dec. 21 Totals 1. Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the FIFO inventory costing method. 2. Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the LIFO inventory costing method. 3. Which method results in a higher cost of goods sold? 4. Which method results in a higher cost of ending merchandise inventory? 5. Which method results in a higher gross profit? Dec. 1 Beginning merchandise inventory Dec. 8 Sale 13 units @ $8 each 6 units @ $24 each 17 units @ $15 each 14 units @ $24 each Dec. 14 Purchase Dec. 21 Sale Compute the gross profit using the using the LIFO inventory costing method Gross profit is using the LIFO inventory costing method. Requirement 3. Which method results in a higher cost of goods sold? The method with the higher cost of goods sold is Requirement 4. Which method results in a higher cost of ending merchandise inventory? The method with the higher cost of ending merchandise inventory is Requirement 5. Which method results in a higher gross profit? The method with the higher gross profit is

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