Johnny Football Shop began operations on January 2, 2014. The following stock record card for footballs was taken from the records at the end of the year.

A physical inventory on December 31, 2014, reveals that 100 footballs were in stock. The bookkeeper informs you that all the discounts were taken. Assume that Johnny Football Shop uses the invoice price less discount for recording purchases.

Instructions
(a) Compute the December 31, 2014, inventory using the FIFO method.
(b) Compute the 2014 cost of goods sold using the LIFO method.
(c) What method would you recommend to the owner to minimize income taxes in 2014, using the inventory information for footballs as aguide?

Transcribed Image Text:

Units Unit Invoice Gross Invoice Date Voucher 10624 11437 6/20 21332 9/12 27644 31269 Tellis Tenms Net 30 1/5, net 30 1/10, net 30 1/10, net 30 1/10, net 30 $1.000 1,040 1,350 1,008 1/15 3/15 16 12 11/24 $5,234 Totals