Lynbrook, Inc. decided to diversify its business during 2023 by selling cases of paper to supplement their delivery services business. As the Controller of Lynbrook, you need to determine the inventory costing method that will be used to record inventory transactions. Lynbrook uses a perpetual inventory system. The following purchases and sales transactions (including the beginning balance) took place during October 2023.Date Activities 10/1 Beginning inventory 150 cases @ 25.00$ per case 10/3 Purchase 250 cases @ 28.50$ per case 10/7 Purchase 300 cases @ 29.00$ per case 10/10 Sales 550 cases @ 50.00$ per case 10/18 Purchase 200 cases @ 33.00$ per case 10/20 Sales 200 cases @ 50.00$ per case 10/23 Purchase 300 cases @ 40.00$ per case 10/27 Sales 250 cases @ 50.00$ per case Cases Acquired at Cost Cases Sold at Retail Required 1. Compute the number of units in ending inventory as of October 31, 2023. 2. Compute the cost assigned to ending inventory as of October 31, 2023 using: (a) FIFO (b) LIFO (c) weighted average 3. Compute gross profit earned by the company for each of the three costing methods in part 2 for the month ending October 31, 2023. 4. If Lynbrook's manager earns a bonus based on a percent of gross profit, which method of inventory costing will the manager likely prefer? As the controller of Lynbrook, your goal is to minimize taxes paid by the company. Which inventory costing method would you prefer? Reminder: Continue using the excel HW policies for preparing your solutions to the above questions, including the standard four-line heading.

Lynbrook, Inc. decided to diversify its business during 2023 by selling cases of paper to supplement their delivery services business. As the Controller of Lynbrook, you need to determine the inventory costing method that will be used to record inventory transactions. Lynbrook uses a perpetual inventory system. The following purchases and sales transactions (including the beginning balance) took place during October 2023. Required 1. Compute the number of units in ending inventory as of October 31, 2023. 2. Compute the cost assigned to ending inventory as of October 31, 2023 using: (a) FIFO (b) LIFO (c) weighted average 3. Compute gross profit earned by the company for each of the three costing methods in part 2 for the month ending October 31, 2023. 4. If Lynbrook's manager earns a bonus based on a percent of gross profit, which method of inventory costing will the manager likely prefer? As the controller of Lynbrook, your goal is to minimize taxes paid by the company. Which inventory costing method would you prefer? Reminder: Continue using the excel HW policies for preparing your solutions to the above questions, including the standard four-line heading