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ATV Co. began operations on March 1 and uses a perpetual inventory system. It entered into purchases and sales for March as shown in the

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ATV Co. began operations on March 1 and uses a perpetual inventory system. It entered into purchases and sales for March as shown in the Tableau Dashboard. March Friday Saturday Sunday Monday Legend No Purchases or Sal. Purchases Sales 2 3 5 5 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 March 1: Purchase 100 units, $50 each March 5: Purchase 400 units, $55 each March 9: Sales 420 units, $85 each March 18: Purchase 120 units, $60 each March 25: Purchase 200 units, $62 each March 29: Sales 160 units, $95 each Periodic FIFO Cost of Goods Sold Ending Inventory Date # of units sold Cost per unit Cost of Goods Sold # of units in ending Inventory Cost per unit Ending Inventory March 1 March 5 March 18 March 25 Total Cost of Goods Available for Sale Cost of Goods #of units Cost per unit Available for Sale 100 $ 50.00 $ 5,000 400 $ 55.00 22,000 120 $ 60.00 7.200 2007 $ 62.00 12,400 820 $ 46,600 0 $ 0 0 $ Periodic LIFO Cost of Goods Sold Cost per Ending Inventory of units Ending in ending unit Inventory inventory # of units sold Cost of Goods Sold Date Cost per unit March 1 March 5 March 18 March 25 Total Cost of Goods Available for Sale Cost of Goods # of units Cost per unit Available for Sale 100 $ 50.00 $ 5,000 400 $ 55.00 22,000 120 $ 60.00 7,200 200 $ 62.00 12,400 $ 46.600 820 0 $ 0 $ 0 Gross Profit FIFO LIFO Required 1 Required 2 Required 3 The CEO's bonus is calculated using net income before income taxes. If the CEO wishes to maximize her bonus, which of the following methods would you recommend? If the CEO wishes to maximize her bonus, which of the following methods would you recommend? Alternatively, the CEO desires the method that minimizes income taxes paid by the company in the current year. If income taxes are based on a percentage of net income, which method would you recommend to the CEO? If income taxes are based on a percentage of net income, which method would you recommend to the CEO?

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