During 2015, TRC Corporation has the following inventory transactions.

For the entire year, the company sells 440 units of inventory for $60 each.

Required:
1. Using FIFO, calculate
(a) Ending inventory,
(b) Cost of goods sold,
(c) Sales revenue,
(d) Gross profit.
2. Using LIFO, calculate
(a) Ending inventory,
(b) Cost of goods sold,
(c) Sales revenue,
(d) Gross profit.
3. Using weighted-average cost, calculate
(a) Ending inventory,
(b) Cost of goods sold,
(c) Sales revenue,
(d) Gross profit.
4. Determine which method will result in higher profitability when inventory costs arerising.

Transcribed Image Text:

Date Jan. 1 Apr. 7Purchase Jul. 16 Oct 6 Transaction Number of Units 50 130 200 110 490 Unit Cost $42 47 Total Cost Beginning inventory $2,100 5,720 9,400 5,280 $22,500 Purchase Purchase 48