Natalie is busy establishing both divisions of her business (cookie classes and mixer sales) and completing her business degree. Her goals for the next 11 months are to sell one mixer per month and to give two to three classes per week.

The cost of the fine European mixers is expected to increase. Natalie has just negotiated new terms with Kzinski that include shipping costs in the negotiated purchase price, but the supplier cannot guarantee the invoice price. Natalie has decided to use a periodic inventory system and now must choose a cost flow assumption for her mixer inventory.

The following transactions occur in February to May 2018. Feb. 2 Natalie buys two deluxe mixers on account from Kzinski Supply Co. for $1,150 ($575 each), terms n/30. 16 She sells one deluxe mixer for $1,100 cash. 25 She pays the amount owed to Kzinski. Mar. 2 She buys one deluxe mixer on account from Kzinski Supply Co. for $592, terms /30. 6 She returns the deluxe mixer from Mar 2. For a full refund. It was damaged. 30 Natalie sells two deluxe mixers for a total of $2,200 cash. 31 She pays the amount owed to Kzinski. Apr.1 She buys two deluxe mixers on account from Kzinski Supply Co. for $1,172 (5585 each), terms n/30. 13 She sells three deluxe mixers for a total of $3,300 cash. 30 Natalie pays the amount owed to Kzinski. May 4 She buys three deluxe mixers on account from Kzinski Supply Co. for $1,800 (5500 each), terms /30. 27 She sells one deluxe mixer for $1,100 cash. Instructions (a) Calculate (i) cost of goods sold, (i) ending inventory, (ii) gross profit, under each of the following methods: LIFO, FIFO, and average cost. (Round average unit cost to three decimal places.) Sales of units: All at $1100 1. Goods Available for sale (Purchases and returns) Date Description Units Unit Cost Total Cost Jan 31 Inventory 3 5570 1710 Feb 2 Purchase 2 $575 1150 Mar 2 Purchase 1 $592 592 Jan 31 O units Feb 16 1 unit Mar 30 2 units Mar 6 Return -1 -592 -592 Mar 6 -1 units Purchase 2 588 1172 3 units Apr 1 May 4 Total units available for sale Purchase 3 800 1800 Apr 13 May 27 1 unit 11 5832 Total Sold 6 units FIFO LIFO Weighted Average Cost of Goods Sold Cost of Goods Sold Cost of Goods Sold Ending Inventory Value Ending Inventory Value Ending Inventory Value Gross Profit Gross Profit Gross Profit