Exercise 6-5A Calculate inventory amounts when costs are declining (LO6-3) (The following information applies to the questions displayed below.] During the year, Trombley Incorporated has the following inventory transactions. Date Jan. 1 Mar. 4 Jun. 9 Nov. 11 Transaction Beginning inventory Purchase Purchase Purchase Number of Units 23 28 33 33 Unit Cost $ 25 24 23 21 Total Cost $ 575 672 759 693 117 $ 2,699 For the entire year, the company sells 89 units of inventory for $33 each. 1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. FIFO Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of Goods # of units unit Available for Sale $ 0 Cost per # of units Cost per unit Cost of Goods Sold # of units Cost Ending per unit Inventory $ 0 $ 0 Beginning Inventory Purchases: Mar 04 0 0 Jun 09 0 $ $ $ O Ooo Nov 11 O 0 Total 0 $ 0 Sales revenue Gross profit 2. Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units Cost per Cost of Goods Sold # of units unit Cost Ending per unit Inventory Beginning Inventory Purchases: Mar 04 Jun 09 Nov 11 Total Sales revenue Gross profit 3. Using weighted average cost, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. (Round "Average Cost per unit" to 2 decimal places and all other answers to the nearest whole number.) Weighted Average Cost Cost of Goods Sold - Weighted Cost of Goods Available for Sale Ending Inventory - Weighted Average Average Cost Cost Average Cost of Goods Average # of units Average # of units Cost per Available for # of units Ending Cost per Cost per Goods Sold in Ending Sold unit Inventory Inventory unit Sale 23 $ 575 Beginning Inventory Purchases: Mar.4 28 672 Jun.9 33 759 Nov. 11 33 693 Total 117 $ 2,699 Sales revenue Gross profit 4. Which method will result in higher profitability when inventory costs are declining? Multiple Choice FIFO Weighted average LIFO