During 2012, TRC Corporation has the following inventory transactions.

For the entire year, the company sells 400 units of inventory for $50 each.
Required:
1. Using FIFO, calculate
(a) Ending inventory,
(b) Cost of goods sold,
(c) Sales revenue, and
(d) Gross profit.
2. Using LIFO, calculate
(a) Ending inventory,
(b) Cost of goods sold,
(c) Sales revenue, and
(d) Gross profit.
3. Using weighted-average cost, calculate
(a) Ending inventory,
(b) Cost of goods sold,
(c) Sales revenue, and
(d) Gross profit.
4. Determine which method will result in higher profitability when inventory costs are rising.

Transcribed Image Text:

Number of Units Total Cost Date Jan. 1 Apr. 7 Jul. 16 Oct. 6 Transaction Unit Cost Beginning inventory Purchase Purchase Purchase 190 100 450 $1,280 4,080 7,030 3,800 $16.190 37