During the year, TRC Corporation has the following inventory transactions.

Date Transaction Number of Units Unit Cost Total Cost

January 1 Beginning inventory 47 $39 $1,833

April 7 Purchase 127 41 5,207

July 16 Purchase 197 44 8,668

October 6 Purchase 107 45 4,815

478 $20,523

For the entire year, the company sells 426 units of inventory for $57 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.