Burke Company uses the LIFO perpetual method for financial reporting and tax purposes. A summary of Burke€™s inventory for the current year is presented below.

Requireda. Compute the ending inventory and cost of goods sold for the current year.
b. Prepare a partial income statement showing the gross profit for the current year.

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LIFO Inventory Description Beginning inventory: January 1 Units Unit Cost Total Cost Units Sold First layer 10,000 6,000 16,000 $ 31.000 23,400 $54,400 $3.10 Second layer 3.90 Total beginning inventory Units sold on February 20 at $705 Purchases or Production: 14,000 2,000 8,500 5.10 5.60 10,200 47600 March 31 July 15 Units sold on December 1 at $7.25 Cost of goods available for sale Total units sold Ending inventory: December 31 11,000 26,500 25,000) 1,500 $112,200