Effect of inventory cost flow on ending inventory balance and gross margin Dugan Sales had the following transactions for jackets in 2013, its first year of operations:

ending inventory balance and">

During the year, Dugan Sales sold 830 jackets for $40 each.
Required
1. Compute the amount of ending inventory Dugan would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) Weighted average.
2. Record the above transactions in general journal form and post to T-accounts using (1) FIFO, (2) LIFO, and (3) Weighted average. Use a separate set of journal entries and T-accounts for each method. Assume all transactions are cash transactions.
3. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.

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Jan. 20 Purchased 80 units S15 $1,200 Apr. 21 Purchased 420 units S16 6,720 July 25 Purchased 250 units S20 5,000 Sept. 3,300 19 Purchased 150 units @ S22