The inventory schedule shows ending balances by date. The challenge is to determine purchases and cost of goods sold by comparing the ending inventory balances on each date. Assume only one transaction was made to account for the difference.

Widget Tek Inc.'s original accountant accepted a position with another firm and left in early March. You have been asked to review the subsidiary inventory ledger record for Widget Tek Inc.'s main product for March Inventory Date Quantity Unit Cost Total Cost Mar. 1 $98.00 $83,300 850 $95.00 $121.125 1,275 Mar. 8 $98.00 650 S63.700 $98.00 31,850 Mar. 11 325 $98.00 Mar. 14 325 31,850 780 $103.00 S80,340 260 Mar. 22 $98.00 $25,480 Mar. 25 $98.00 260 S25,480 $99.00 $158,400 1,600 Study the inventory record for March and answer the questions that follow. 1. Assuming that the product sells for $165 and that 70% of sales are on account, determine the gross profit from sales for March. 2. Making the same assumptions as in (1), determine the ending inventory cost for March. 3. Which inventory method is being used? LIFO