You have the following information for Company XYZ for the monthended October 31, 2007. Company XYZ uses a periodic method forinventory.
Date Description Units Unit Cost or SellingPrice
Oct. 1 Beginning Inventory 60 $25
Oct.9 Purchase 120 27
Oct.11 Sale 100 35
Oct.17 Purchase 90 28
Oct.22 Sale 60 40
Oct. 25 Purchase 80
Oct.29 Sale 120 40
a) Calculate (i) ending inventory, (ii) cost of goods sold, (iii)gross profit, and (iv) gross profit rate under each of thefollowing methods.
(1) LIFO.
(2) FIFO.
(3) Average cost. (Round cost per unit to threedecimal places.)
b) Compare results for the three cost flow assumptions.