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Marlow Company uses a perpetual inventory system. It entered into the following calendar year 2011 purchases and sales transactions. Date Activities Units Acquired at Cost

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Marlow Company uses a perpetual inventory system. It entered into the following calendar year 2011 purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail 600 units @ $44/unit 200 units @ $40/unit 100 units @ $20/unit Jan. Feb. 10 Mar. 13 Mar. 15 Aug 21 Sept. 5 Sept. 10 400 units @ $75/unit Beginning inventory ......... Purchase.... Purchase............... Sales ............. Purchase ......... Purchase...... Sales ............ Totals .............. 160 units @ $60/unit 280 units @ $48/unit 200 units @ $75/unit 600 units 1.340 units Required Analysis Component 5. If the company's manager earns a bonus based on a percent of gross profit, which method of inventory costing will the manager likely prefer

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