question 9 ch 6

\begin{tabular}{|c|c|c|c|} \hline Dec. 1 Beginning merchandise inventory & 12 & units@\$ & 8 each \\ \hline 8 Sale & 9 & units@\$ & 18 each \\ \hline 14 Purchase & 17 & units@\$ & 13 each \\ \hline 21 Sale & 13 & units@\$ & 18 each \\ \hline \end{tabular} Assume that Toys Galore store purchased and sold a line of dolls during December as follows. (6) (Click the icon to view the transactions) Toys Galore uses the perpetual inventory system. Requirement 1. Compute the cost of goods sold, cost of ending merchandie imventary, and gross profit uning the FifO irvortory costing method. Begin by computing the cost of goods soid and cost of ending merchandfse inventory using the FiFO inventary cossing method. Enter the transactions in chronological order, calculating new inventory on hand balancos after each transaction. Once all of the transactions have been entered into the perpetual rucord, calculate the quantity and toctal cost of merchendise inventory purchased. sold, and on hand at the end of the period. (Enter the oldest inventory layera first) Requirements 1. Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the FIFO inventory costing method. 2. Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the LIFO inventory costing method. 3. Which method results in a higher cost of goods sold? 4. Which method results in a higher cost of ending merchandise inventory? 5. Which method results in a higher gross profit