Question
During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost January 1 Beginning inventory 44 $36
During the year, TRC Corporation has the following inventory transactions.
Date | Transaction | Number of Units | Unit Cost | Total Cost |
---|---|---|---|---|
January 1 | Beginning inventory | 44 | $36 | $1,584 |
April 7 | Purchase | 124 | 38 | 4,712 |
July 16 | Purchase | 194 | 41 | 7,954 |
October 6 | Purchase | 104 | 42 | 4,368 |
466 | $18,618 |
For the entire year, the company sells 413 units of inventory for $54 each.
Required: 1-a & b. Using FIFO, calculate ending inventory and cost of goods sold. 1-c & d. Using FIFO, calculate sales revenue and gross profit. 2-a & b. Using LIFO, calculate ending inventory and cost of goods sold. 2-c & d. Using LIFO, calculate sales revenue and gross profit. 3-a & b. Using weighted-average cost, calculate ending inventory and cost of goods sold. 3-c & d. Using weighted-average cost, calculate sales revenue and gross profit. 4. Determine which method will result in higher profitability when inventory costs are rising.
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