Bats, Inc., began January with 100 bats that cost $175 each. During January, the store made...

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Bats, Inc., began January with 100 bats that cost $175 each. During January, the store made the following purchases: January 3rd 200 bats for $180.00 each, January 12th 150 bats for $190.00 each and on January 24th 240 bats for $195.00 each. Bats, Inc. sold 500 bats and ended January with 190 bats. The sale price of each bat was $230. 1. Determine the cost of goods sold and ending inventory amounts by the weighted average, FIFO, and LIFO cost methods. Round average cost per unit to 2 decimal places, and round all other amounts to the nearest dollar. 2. Explain why cost of goods sold is highest under LIFO. 3. Calculate Bats' Gross Profit if Bats uses the LIFO method for inventory. Bats, Inc., began January with 100 bats that cost $175 each. During January, the store made the following purchases: January 3rd 200 bats for $180.00 each, January 12th 150 bats for $190.00 each and on January 24th 240 bats for $195.00 each. Bats, Inc. sold 500 bats and ended January with 190 bats. The sale price of each bat was $230. 1. Determine the cost of goods sold and ending inventory amounts by the weighted average, FIFO, and LIFO cost methods. Round average cost per unit to 2 decimal places, and round all other amounts to the nearest dollar. 2. Explain why cost of goods sold is highest under LIFO. 3. Calculate Bats' Gross Profit if Bats uses the LIFO method for inventory.

Answer rating: 100% (QA)

Answer 1 2 Cost of Goods under LIFO is higher under LIFO Last in firs... View the full answer