Exercise 6-4 (Algo) Calculate inventory amounts when costs are rising (LO6-3)

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.

Using FIFO, calculate ending inventory and cost of goods sold.

FIFO	Cost of Goods Available for Sale	Cost of Goods Sold	Ending Inventory
Number of units	Cost per unit	Cost of Goods Available for Sale	Number of units	Cost per unit	Cost of Goods Sold	Number of units	Cost per unit	Ending Inventory
Beginning Inventory	47	$39	$1,833		$39
Purchases:
April 07	127	$41	5,207		$41
July 16	197	$44	8,668		$44
October 06	107	$45	4,815		$45
Total	478		$20,523