The XYZ Company completed the following perpetual inventory transactions:

May 1 Beginning inventory 20 units @ $ 61 each

May 11 purchase 6 units @ $ 76 each

May 23 sale 16 units @ $ 89 each

May 26 purchase 14 units @ $ 86 each

May 29 sale 17 units @ $ 89 each

Requirements

1.Calculate cost of goods sold, Cost of ending inventory, and gross profit using LIFO.

2.During periods of rising prices, which method (FIFO-LIFO-AVCO) results in the highest gross profit? Why?

Which method would be more consistent with the matching principle? Why?