PO - 3 Inventory accounting- comprehensive www.prenhall.com/revsine Alex Wholesalers Inc. began its business 01 January 1, 2005. Information on its inventory purchased and sales during 2005 are provided below: Inventory Purchases Units Cost per Unit Total January 1 10,000 $4.00 $ 40,000 March 10 8,000 4.10 32,800 April 12 12,000 4.30 51,600 September 15 7,500 4.45 33,375 November 11 6,000 4.75 28,500 December 29 6,500 5.00 32,500 Units available for sale 50,000 $218,775 Inventory Sales Units Price per Unit Total March 1 7,000 $8.00 $ 56,000 September 1 20,000 8.50 170,000 December 1 11,000 9.00 99,000 Units sold 38,000 $325,000 Student Resources Template for solution Assume a lax rate of 40%. Required: 1. Compute the cost of ending inventory and cost of genuels sold under each of the following net ods: 111 HFC),(2) Weighted average cost, and (3) LIFO). Assume that Alex uses the periodic insch tory procedure. 2. Assume that Alex uses the periodic LIFO methou. a. Calculate the replacement cost of the ending inventory and the 1.180) reserve as of the end the year. You may assume that year-end purchase cost was still $5.00 per unit. 5. Provide an estimate of Alex's cost of goods sold under the periodic IIFO) method based only on the information that will be publicly available to the investors of Alex. Explain why your iloswer differs from l'110) cost of goods soll compulcu in requirement l