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You are tasked with analyzing the inventory valuation methods for ABC Company. Utilize the following data: Date Description Quantity Unit Cost ($) Jan 1 Beginning
You are tasked with analyzing the inventory valuation methods for ABC Company. Utilize the following data:
Date | Description | Quantity | Unit Cost ($) |
---|---|---|---|
Jan 1 | Beginning Inventory | 200 | $15 |
Jan 10 | Purchase | 300 | $20 |
Jan 20 | Sale | (250) | |
Jan 31 | Ending Inventory |
Requirements:
- Calculate the cost of goods sold using the weighted average method.
- Determine the ending inventory value using the FIFO and LIFO methods.
- Present the calculations in detailed tables.
- Discuss the impact of each valuation method on profitability and financial statements.
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