Company Information

Sterling Cutlery is a retailer of high$-$end chef knives. The company only sells three models of knives: utility knives, paring knives, and bread knives. Sterling Cutlery manages the flow of inventory using the Last$-$in$,$ First$-$out $($LIFO$)$ assumption.

The company also abides by the GAAP conservatism principle and uses the gross method for recording purchases and the net method for recording sales. Throughout the period of October $20$XX$,$ Sterling Cutlery sold their three respective models for the following prices:

The company began the period with the following quantities of each type of knife in inventory at these respective unit costs:

$\backslash$table$[[$Model$,$Quantity,Unit Cost$],[$Utility$,6,12],[$Paring$,10,9],[$Bread$,12,15]]$

During the period, Sterling Cutlery had the following transactions related to its merchandise inventory. The credit terms for each transaction are listed as well.