E7-7 Analyzing and Interpreting the Financial Statement Effects of FIFO, LIFO, and Weighted Average Cost [LO 7-3]

Scoresby Inc. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.

Transactions	Units			Unit Cost
a. Inventory, Beginning		3,000		$	8
For the year:
b. Purchase, March 5		9,500			9
c. Purchase, September 19		5,000			11
d. Sale, April 15 (sold for $29 per unit)		4,000
e. Sale, October 31 (sold for $31 per unit)		8,000
f. Operating expenses (excluding income tax expense), $250,000