Other Information:

Current selling prices are as follows: Toy Ducks-$26. Operating expenses will be approximately 25% of sales

1. Calculate the value of the ending inventory by department, using the following inventory methods:

a. FIFO

b. LIFO

c. Weighted Average

2. Discuss the effects these different inventory methods will have on:^[1]

a. Cost of Goods Sold

b. Gross Profit

3. Net Income

Playtime Inc. Inventory Record Toy Duck Department Toy Duck Purchases Report For the Year ended 20XX DATE UNITS UNIT PRICE 2/1/XX 1,000 $22.75 5/11/XX 500 22.35 6/21/XX 3,000 22.05 7/9/XX 800 21.45 10/4/XX 5,000 21.22 900 20.97 12/21/XX Ending Inventory 12/31/XX 6,750 units