Question 7 Not changed since taste Marked out of 5.00 F e question Inventory Valuation and Earnings Dominick Portet Wines Inc began operations to import line wines from Australia to the United States Sales and purchase information is provided below Year 1 Year 2 Year 3 Units S Units Sales 170 220 Purchases 250510200 58 TO 15 UFO ending inventory 510 Units 110 Assume that Portet Wines uses the LIFO method of inventory valuation. The purchase amount for Year has been left blank because Portet Wines has not yet decided the total number of units to purchase during the year. (Assume that all sales occur on the last day of the year after all purchases for the year have been made. The company's year and is December 31 Required 1. How many units should be purchased in Year 3 if the firm's objective is to maximize reported income for the year? 0 2. Compute the cost of goods sold for Year 3 assuming the number of units computed in this purchased $ How many units should be purchased in year air the firm's objective is to mirme income tales for the year: 9 4. Compute the cost of goods sold for Year X assuming the number of units computed in ) is purchased 30 5. Assume Portet Wines uses FIFO instead of LIFO and the company purchased just enough units to meet sales demand. What would the cost of goods sold be in Year 2 Assume that FIFO ending inventory is equal to 80 units at $10 in Year 1 and 60 units at 58 in Year 2 0 Previous Save Answers Finish attempt