Question: Data from Trail Bikes, Inc.'s perpetual inventory records for a tire it produces and sells follow: The company sold 53,000 tires during the year at

Data from Trail Bikes, Inc.'s perpetual inventory records for a tire it produces and sells follow:

Data from Trail Bikes, Inc.’s perpetual inventory records for a

The company sold 53,000 tires during the year at $ 20 each.


Required

A. Compute the cost of the ending inventory and the cost of goods sold using both FIFO and LIFO.

B. In your opinion, which of the two methods is a better representation of the balance sheet value for the inventory? Why?

C. What is the gross margin using each method?

D. Which method do you think is more representative of the firm's income? Why?

Nuanber of Units Cost per Unit Beginning inventory Transfers to Finished Goods:

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a FIFO Date Purchased Cost of goods sold Inventory balance March 1 6000 1225 73500 March 3 12000 122... View full answer

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