During the year, Trombley Inc has the following inventory transactions: Date Transaction of units Unit cost Total Cost 1/1 Beginning Inventory 20 $22 $440 3/4 Purchase Inventory 25 $21 $525 6/9 Purchase Inventory 30 $20 $600 11/11 Purchase Inventory 30 $18 $540 105 $2,105 For the entire year, the company sells 81 units of inventory for $30 each. Required: 1. Using FIFO, calculate cost of goods sold, ending inventory value, sales revenue and gross profit 2. Using LIFO, calculate cost of goods sold, ending inventory value, sales revenue and gross profit 3. Using Weighted-average cost, calculate cost of goods sold, ending inventory value, sales revenue and gross profit 4. Determine which method will result in higher profitability when inventory costs are declining Requirement 1: FIFO # of units Unit cost 20 $ 22 Total Cost #units sold Unit Cost $440 Cost of Goods Sold 25 $ 21 $525 Date Transaction 1/1 Beginning inv 1/1 Sell beginning inv 3/4 Purchase Inv 3/4 Sell purchased in 6/9 Purchase Inv 6/9 Sell purchased in 11/11 Purchase Inv 11/11 Sell purchased inv 30 S 20 $600 30 $ 18 $540 Total Inventory Sold: 0 $0 # of units Unit Cost Total Value 12/31 Ending Inventory Sales Revenue Cost of Goods Sold Gross Profit $0 Requirement 2: LIFO Unit cost # of units 20 Cost of Goods Sold Total Cost #units sold Unit Cost $440 22 25 21 $525 Date Transaction 1/1 Beginning in 1/1 Sell beginning inv 3/4 Purchase Inv 3/4 Sell purchased in 6/9 Purchase Inv 6/9 Sell purchased inv 11/11 Purchase Inv 11/11 Sell purchased in 30 20 $600 30 18 $540 Total Inventory Sold: 0 $0 # of units Unit Cost Total Value 12/31 Ending Inventory Sales Revenue Cost of Goods Sold Gross Profit $0 Requirement 3: Weighted average cost Date Transaction # of units Unit cost 1/1 Beginning Inventory 20 $22 3/4 Purchase Inventory 25 $21 6/9 Purchase Inventory 30 $20 11/11 Purchase Inventory 30 $18 105 Weighted Average Cost: Total Cost $440 $525 $600 $540 $2,105 # of units Unit Cost Total Value 12/31 Ending Inventory Sales Revenue Cost of Goods Sold Gross Profit $0 Requirement 4: Which has higher profitability when inventory costs are declining? has higher profitability when inventory costs are declining