The following schedule summarizes the inventory purchases and sales of Brooks Street Enterprises during January 2009:

Required:
(a) Determine Brooks Street€™s ending inventory, cost of goods sold, and gross profit for January 2009, assuming the company uses a perpetual inventory system and the following inventory costing methods: (1) FIFO, (2) LIFO, and (3) moving-average.
(b) Which of the three inventory costing methods yields the most impressive financial results for Brooks Street? Explain.
(c) What factors should a company consider when choosing an inventory costing method? Should one of these factors be the inventory costing method preferred by the decision makers who will be using the company€™s financial statements?

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Per Un Per Unit of Units Cost Selling Price BI Jan. 2 purchase Jan. 5 sale Jan. 9 purchase Jan. 14 sale Jan. 18 purchase Jan. 21 sale Jan. 25 purchase Jan. 31 sale 400 200 300 200 350 200 150 500 450 $40 $ 80 48 90 50 90 52 100