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During the year, Trombley Incorporated has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 18 $
During the year, Trombley Incorporated has the following inventory transactions.
Date | Transaction | Number of Units | Unit Cost | Total Cost |
Jan. 1 | Beginning inventory | 18 | $ 20 | $ 360 |
Mar. 4 | Purchase | 23 | 19 | 437 |
Jun. 9 | Purchase | 28 | 18 | 504 |
Nov. 11 | Purchase | 28 | 16 | 448 |
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97 | $ 1,749 | |||
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For the entire year, the company sells 71 units of inventory for $28 each.
Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. Using UFO, 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 2 decimal places.) Which method will result in higher profitability when inventory costs are declining? LIFO weighted-average FIFOStep by Step Solution
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