The following information was available from the inventory records of the Brooks Company for January 2016:

Units Unit Cost Total Cost

Balance at 1/1/2016 3,000 $19.55 $ 58,650

Purchases:

January 6, 2016 2,250 20.60 46,350

January 26, 2016 10,200 21.50 219,300

Sales:

January 7, 2016 2,700

January 31, 2016 7,200

Balance at 1/31/2016 5,550

1) Assuming that Brooks maintains its inventory on a periodic system, what should the ending inventory value be at January 31, 2016, using the FIFO inventory method? What should the amount of cost of goods sold be for the month of January 2016 under this method?

2) Assuming that Brooks maintains its inventory on a perpetual system, what should the ending inventory value be at January 31, 2016, using the LIFO inventory method? What should the amount of cost of goods sold be for the month of January 2016 under this method?

3) Assuming that Brooks maintains its inventory using a periodic system, what should the ending inventory value be at January 31, 2016, using the average cost inventory method? What should the amount of cost of goods sold be for January 2016 under this method?

4. Based on your computations in parts 1, 2, and 3, if total sales for the month of January 2016 are $250,000, what is the reported gross profit in $s and the gross profit % under each of the inventory methods (FIFO, LIFO, and Weighted Average)?

FIFO LIFO Wghtd. Average

Sales

Cost of Goods Sold

Gross Profit ($'s)

Gross Profit %