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Part A During the year, Heron Company has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory

Part A

During the year, Heron Company has the following inventory transactions.

Date Transaction Number of Units Unit Cost Total Cost
Jan. 1 Beginning inventory 35 $42 $1,470
March 4 Purchase 122 44 5,368
June 16 Purchase 184 47 8,648
Sept. 9 Purchase 105 48 5,040
Total 446 20,526

During the year, Heron sells 385 units of inventory for $55 each.

    1. Assuming the FIFO inventory cost method, calculate ending inventory, cost of goods sold, sales revenue, and gross profit for the year.
    2. Assuming the LIFO inventory cost method, calculate ending inventory, cost of goods sold, sales revenue, and gross profit for the year.
    3. Assuming the weighted-average inventory cost method, calculate ending inventory, cost of goods sold, sales revenue, and gross profit for the year. (Round weighted-average cost per unit to two decimal places.)
    4. Which method results in the highest profit? Please explain your answer.

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