Question
During the year, Trombley Incorporated has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 11 $
During the year, Trombley Incorporated has the following inventory transactions.
Date | Transaction | Number of Units | Unit Cost | Total Cost |
Jan. 1 | Beginning inventory | 11 | $ 13 | $ 143 |
Mar. 4 | Purchase | 16 | 12 | 192 |
Jun. 9 | Purchase | 21 | 11 | 231 |
Nov. 11 | Purchase | 21 | 9 | 189 |
69 | $ 755 | |||
For the entire year, the company sells 51 units of inventory for $21 each.
A: Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
B:Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit
C:Using weighted-average cost, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. (Round "Weighted-Average Cost per unit" to 2 decimal places.)
D: Which method will result in higher profitability when inventory costs are declining?
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