Jepson Electronic Center began December wch 100 units of merchandise inventory that cost $78 each. During Decembet, the store made the folowing purchases: (17. (Cick the icon to view the purchases.) Jepson user the penodic inventory system, and the physicat count at December 31 indicatos that 130 units of merchandise inventory are on hand. Read the requirements. Requirement 1. Determine the ending merchandise inveetory and cost of goods sold amounts for the Decemiber fnancial statements using the FIFO. LiFO, and weighted-averige imventory coe metheds. Requirement 1. Determine the ending merchandise inventory and cost of goods sold amounts for the July financial statements using the FIFO, LFO, and weighted-average invontory costing methods. methods. Ending inventery Cost of goods sold Requirement 2. Sales revenue for July totaled $25,000. Compute Up - to - Date's gross profit for July using each method. FIFO Cost LIFO Cost Weighted-average Grost proft Requirement 3. Which method will result in the lowest income laxes for Up - to - Daso? Why? Which method will result in the highest not income for Up - io - Date? Wery? The method will result in the lowest income taxes because under this method, companys gross profit is thy Which method will result in the highest net income for UP= to - Date? Why? Tr method wil result in the highest net income because under this method, companys gross proft is the Tomorrows Electronic Center began December with 60 units of merchandise inventory that cost $68 each. During December, the store made the following purchases: Ift (Click the icon to view the purchases.) Tomorrows uses the periode inventory system, and the phytical count at December 31 indicates that 90 units of merchandise icventory are on hand Read the teguirements. Requirement 1. Determine the ending merchandse inventory and cos of goods sold amounts for the December financial statoments using the FIFO, LIFO, and woighted-average inventory of methods. Requirement 1. Determine the ending merchandise inventory and cost of goods sold amounts for the July financial statements using the FIFO, LFO, and weighted-average invontory costing methods. Ending inventory Cost of goods sold Requirement 2. Sales revenue for July totaled $25,000. Compute Up- to-Date's gross profit for July using each method FIFO Cost Grose profit LIFO Cost Weighted-average Requirement 3. Which method will result in the lowest income taxes for Up - to - Dato? Why? Which method will result in the highest net incorne for Up - to - Date? Wery? The method will result in the lowest income taxes because under this methed, company's gross proft is the Which mathod wall resual in the highest net income for UD10Date? Why? Tr method wil result in the highest net income because under this method, company's gross proft is the
