P6.5

P6.5A (LO 2) You are provided with the following information for Najera Inc. for the month ended June 30, 2020. Najera uses the periodic method for inventory. Unit Cost or Date Description Quantity Selling Price June 1 Beginning inventory 40 $40 June 4 Purchase 135 44 June 10 Sale June 11 Sale return June 18 Purchase 46 June 18 Purchase return June 25 Sale June 28 Purchase 46 20 Instructions a. Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate-under each of the following methods. 1. LIFO. 2. FIFO. 3. Average b.Compare results for the three two cost flow assumptions