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Oct. 1 Beginning merchandise inventory 2 0 tires @ $ 6 3 each Oct. 1 1 Purchase 1 2 tires @ $ 8 7 each
Oct.
Beginning merchandise inventory
tires @ $ each
Oct.
Purchase
tires @ $ each
Oct.
Sale
tires @ $ each
Oct.
Purchase
tires @ $ each
Oct.
Sale
tires @ $ each
Compute cost of goods sold and gross profit using the FIFO inventory costing method.
Compute cost of goods sold and gross profit using the LIFO inventory costing method.
Compute cost of goods sold and gross profit using the weightedaverage inventory costing method.Round weightedaverage cost per unit to the nearest cent and all other amounts to the nearest dollar.
Which method results in the largest gross profit, and why?
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