THE UNIVERSITY OF TEXAS AT TYLER INVENTORY COST FLOW METHODS ACCT 3311 HO 9-1: Needles Co. begins operations in January, 2019 as a retailer of widgets. Its purchases and sales during the first quarter of 2019 are as below: January 1: Purchases 4 widgets for S100 cach January 15: Purchases 2 widgets for $250. February 1: Purchases I widget for $300 March 1: Sells 5 widgets for $475 cach. Needles faces a tax rate of 30%. Assume the firm has no expenses other than cost of goods sold and taxes Required: 1. What is Needles Co.'s net income, ending inventory and tax expense for the quarter if it uses the weighted average cost method to value inventory! 2. What is Noodles Co.'s net income, ending inventory and tax expense for the quarter if it uses the FIFO method to value inventory? What is Needles Co.'s net income, ending inventory and tax expense for the quarter if it uses the LIFO method to value inventory? Which method produces the highest COGS? Highest Ending Inventory? Highest sales! HO9-2: The following information is available about Webber Company's 2019 inventory activities. Calculate cost of goods sold, gross profit, and ending inventory under each of the following inventory cost assumptions: LIFO, FIFO, and weighted-average under 1) a periodic and 2) a perpetual inventory system WEBBER CO. 2019 INVENTORY DATA Units Cost per Unit Total cost Beginning inventory 1/1/19 2.500 SID $25,000 Production runs 1/30/19 2,000 12 24.000 2/15/19 2.100 23.100 S/15/19 1.400 12 16.800 8/15/19 3.000 42.000 9/04/19 1.300 17 25.500 12/15/19 20.00 18 36.000 Goods available for sale-2019 S1924 4 11 14 14.500 Sales Price Unit 6/30/19 11/20/19 Total sales in 2019 Units 5.200 5.750 10.950 525.00 S28.00 Total $130.000 161 529