Records of the Genesis Corporation reveal the following information about inventory during the year. The companys accountant

Records of the Genesis Corporation reveal the following information about inventory during the year.

The company’s accountant is trying to decide whether to determine Cost of Goods Sold using the perpetual inventory system (calculating Cost of Goods Sold after every sale) or the periodic inventory system (calculating Cost of Goods Sold at the end of the year only). Assume the company uses the LIFO method for inventory costing.
Required Using the information given above, answer each of the following questions.
A. How many units have been sold? How many units remain in ending inventory?
B. What is Cost of Goods Sold using the perpetual method? The periodic method? What is the cost of ending inventory for each method?
C. Is there a difference in net income for each method? Why? (Assume for purposes of this question that Sales Revenue is $85,000 and all other expenses are $5,600.)
D. What are the advantages of using perpetual? Usingperiodic?

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January 1 March 15 July 21 Beginning inventory Purchase of inventory Sale of inventory Purchase of inventory Sale of inventory 1,000 units 3,500 units 4,000 units 1,600 units 1,200 units $10 $12 $14 October 31