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PB7-1 (Algo) Analyzing the Effects of Four Alternative Inventory Methods in a Periodic Inventory System [LO 7-3] Mojo Industries tracks the number of units purchased

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PB7-1 (Algo) Analyzing the Effects of Four Alternative Inventory Methods in a Periodic Inventory System [LO 7-3] Mojo Industries tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the accounting period, January 31. The inventory's selling price is $16 per unit. Unit Transactions Cost Units Total Cost Inventory, January 1 $ 6.00 200 $ 1,200 Sale, January 10 (140) Purchase, January 12 6.50 250 1,625 Sale, January 17 (150) Purchase, January 26 7.50 50 375 Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at January 31 under each of the following inventory costing methods: a. Weighted average cost. b. First-in, first-out. c. Last-in, first-out. d. Specific identification, assuming that the January 10 sale was from the beginning inventory and the January 17 sale was from the January 12 purchase. 2.a. Of the four methods, which will result in the highest gross profit? 2-b. Of the four methods, which will result in the lowest income taxes? Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 28 Compute the amount of goods available for sale, ending inventory, and cost of goods sold at January 31 under each of the inventory costing methods. (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) Amount of Goods Available for Sale Cost of Goods Ending Inventory Sold a. Weighted average cost b. First-in, first-out c. Last-in, first-out: d. Specific identification PB7-1 (Algo) Analyzing the Effects of Four Alternative Inventory Methods in a Periodic Inventory System [LO 7-3) Mojo Industries tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the accounting period, January 31. The inventory's selling price is $16 per unit. Unit Transactions Cost Units Total Cost Inventory, January 1 $ 6.00 200 $ 1,200 Sale, January 10 (140) Purchase, January 12 6.50 250 1,625 Sale, January 17 (150) Purchase, January 26 7.50 50 375 Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at January 31 under each of the following inventory costing methods: a. Weighted average cost. b. First-in, first-out. c. Last-in, first-out d. Specific identification, assuming that the January 10 sale was from the beginning inventory and the January 17 sale was from the January 12 purchase. 2-a. Of the four methods, which will result in the highest gross profit? 2.b. Of the four methods, which will result in the lowest income taxes? Complete this question by entering your answers in the tabs below. Req1 Req 2A Reg 28 of the four methods, which will result in the highest gross profit? PB7-1 (Algo) Analyzing the Effects of Four Alternative Inventory Methods in a Periodic Inventory System [LO 7-3) Mojo Industries tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the accounting period, January 31. The inventory's selling price is $16 per unit. Unit Transactions Cost Units Total Cost Inventory, January 1 $ 6.00 200 $ 1,200 Sale, January 10 (140) Purchase, January 12 6.50 250 1,625 Sale, January 17 (150) Purchase, January 26 7.50 50 375 Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at January 31 under each of the following inventory costing methods: a. Weighted average cost. b. First-in, first-out. c. Last-in, first-out d. Specific identification, assuming that the January 10 sale was from the beginning inventory and the January 17 sale was from the January 12 purchase. 2-a. Of the four methods, which will result in the highest gross profit? 2.b. Of the four methods, which will result in the lowest income taxes? Complete this question by entering your answers in the tabs below. Req1 Req 2A Reg 2B of the four methods, which will result in the lowest income taxes

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