Question
During the year, TRC Corporation has the following inventory transactions. Date: Jan. 1, Transaction: Beginning inventory, Units: 41, Unite Cost: $33, total costs $1,353 Date:
During the year, TRC Corporation has the following inventory transactions.
Date: Jan. 1, Transaction: Beginning inventory, Units: 41, Unite Cost: $33, total costs $1,353
Date: Apr. 7, Transaction: Purchase, Units: 121, Unite Cost: $35, total costs $4,235
Date: Jul. 16, Transaction: Purchase, Units: 191, Unite Cost: $38, total costs $7,258
Date: Oct. 6, Transaction: Purchase, Units: 101, Unite Cost: $39, total costs $3,939
454 total units and $16,785 total cost.
For the entire year, the company sells 410 units of inventory for $51 each.
Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. Using weighted-average cost, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. (Round "Weighted-Average Cost per unit" to 4 decimal places) Determine which method will result in higher profitability when inventory costs are rising.
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