Ortiz Organization uses a periodic inventory system to track its baseball bat inventory. The following information is available about the company’s inventory for 2021:

Date	Transaction	Units	Cost per Unit	Total Cost
1/1	Beginning Inventory	600	$20.00	$12,000
6/10	Purchase	800	$25.00	$20,000
11/1	Purchase	500	$30.00	$15,000
1,900	$47,000

During 2021, Ortiz Organization sold 1,000 bats at $50 each.

Compute the following. Show your calculations!

1. Ending Inventory balance using the FIFO method

2. Cost of goods sold using the weighted average method (round to 2 decimals at the end)

3. Gross profit using the LIFO method

4. Which method would result in the lowest taxable income?

Answer rating: 100% (QA)

1 Ending Inventory Under FIFO will be Unit will be ... View the full answer