Exercise $6-6$ Specific identification cost flow assumption LO$2$ e$)$ cel

CHECK FIGURE: COGS $=$$$4,529\mathrm{.}50$

Use the information in Exercise $6-5.$ Assume that Car Armour specifically sold the following units:

$\backslash$table$[[$Jan$.10$:$,80,$units from beginning inventory$],[$Mar$.15$: $10,$units from beginning inventory, and,$],[$Oct$.5$: $200,$units from the July $28$ purchase, and,$],[,470,$units from the October $3$ purchase$]]$

Calculate cost to be assigned to ending inventory and cost of goods sold.

Exercise $6-7$ Income statement effects of alternative cost flow assumptions LO$3$

Use the data in Exercises $6-5$ and $6-6$ to construct comparative income statements for Car Armour $($year$-$end December $31,2020),$ similar to those shown in Exhibit $6\mathrm{.}8$ in the chapter. Assume that operating expenses are $$1,250.$

Which method results in the highest profit?

If costs were rising instead of falling, which method would result in the highest profit?