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Question The following transactions took place in Prince s Sales Limited during the year ended December 3 1 , 2 0 2 3 : Purchase
Question
The following transactions took place in Princes Sales Limited during the year ended December :
Purchase #
Purchase #
Purchase #
Purchase # units @ $
units @ $
units @ $
units @ $
There was no opening inventory. On December units were sold for $ each.
For specific identification purposes, the items sold were:
units of purchase #
units of purchase #
units of purchase #
units of purchase #
Required:
Calculate the cost of ending inventory under each of the following costing methods:
a FIFO
b Specific identification
c Weighted average
Complete the following calculations:
FIFO Spec. Ident. Wtd Avg.
Sales
Cost of goods sold
Gross profit
In a period of rising prices, does FIFO or weighted average costing produce the lowest net income?
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