Question 1: Assume the company applies Moving Weighted Average inventory costing in a perpetual inventory system. Calculate the dollar value for cost of goods sold. Round calculations to the nearest whole cent.
Question 2: Record the January sale. Assume all sales are on credit.
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Question 3: Calculate the net income (loss) for the month of January assuming operating expenses were $7,500.
Question 4: If Dave's Electronics is experiencing deflation with it's inventory purchases, which inventory costing method will provide the highest net income? Explain.