licies note how they TAKING IT FURTHER Companies are required to disclose in a significant accounting policies note how determine the cost of their inventory. Both Pepsi and Coca-Cola state that they use weighted average and F Under what circumstances would it make sense for a company to use both cost formulas? ) AP P6-11A The Baby Store had a beginning inventory on January 1 of 200 full-size strollers at a cost of $110 per unit. During the year, the following purchases were made: Units Unit Cost Mar. 15 80 $111 July 20 60 110 Sept. 4 Dec. 2 10 25 108 103 At the end of the year, there were 35 units on hand. The Baby Store uses a periodic inventory system. Instructions (a) Determine the cost of goods available for sale. (b) During the year, The Baby Store sold the strollers for $290 per unit. Calculate the number of units sold during the year and total sales revenue. (c) Determine the cost of the ending inventory and the cost of goods sold using (1) FIFO and (2) weighted aver- age. (Round the weighted average cost per unit to two decimal places.) (d) Calculate gross profit using (1) FIFO and (2) weighted average