Problem 4 Laz-y-Girl Co. sells leather recliners. The following schedule relates to the company's inventory for the month of October: Units Unit cost Total cost October ! Beginning inventory 74 $599 $44,326 3 Purchase 52 618 32.136 5 Sale 37 II Purchase 24 654 15,696 15 Sale 56 22 Sale 39 28 Purchase 50 677 33,850 Laz-y-Girl uses the periodic inventory system. Inventory at the end of October was 68 units. Each chair sells for $1,150. (Round COGS to the nearest dollar and cost per unit to 2 decimal places, e.g. $10.52) Required: (6 marks - 15 minutes) For the month of October, calculate cost of goods sold using: FIFO 74 + 152 + 24 + o) - (3745 +34) = ***13Iuding in.) $44, 316 = 3.924 sold 37 +56 +39 = 132 Begr. 74 x 599 = $46,326 Oct. 3 - 52 x 618 = $37, 36 3 1924 a. & Calculated for you. 6x6 + 32,136 - So, 286 + ii. $ 126,00?? $604 - Weighted average & COGS Teostal writs Cuail 20. 2 XBL 165 b. Explain which method would result in the highest ending inventory amount. No marks will be awarded for calculations; you must explain how you determined your answer. RICO