March 1 - Purchase - 100 units/$50 = $5000 March 5 - Purchase - 400 units/$55 = $22000 March 9 - Sales - 420 units/$85 = $35700 March 18 - Purchase - 120 units/$60 = $7200 March 25 - Purchase - 200 units/$62 = $12400 March 29 - Sales - 160 units/$95 = $15200

The CEO has asked you to help her decide whether to use LIFO or FIFO for inventory costing. Compute the gross profit earned by the company for both LIFO and FIFO. Perpetual FIFO: Goods Purchased # of Cost per unit| # of units units I sold 100 @ $ 50.00 Cost of Goods Sold Cost per unit Cost of Goods Sold Date # of units Inventory Balance Cost per unit Inventory Balance $ 50.00 = $ 5,000.00 March 1 | 100 @ March 5 March 9 March 18 March 25 March 29 Totals $ 0.00 $ 0.00 The CEO has asked you to help her decide whether to use LIFO or FIFO for inventory costing. Compute the gross profit earned by the company for both LIFO and FIFO. Perpetual LIFO: Date Goods Purchased # of cost per unit# of units units 100 @ $ 50.00 Cost per unit sold Cost of Goods Sold Cost per cost of Goods Sold | # of units 100 @ Inventory Balance Cost per unit Inventory Balance $ 50.00 = $ 5,000.00 unit March 1 March 5 March 9 March 18 March 25 March 29 Totals $ 0.00 The CEO has asked you to help her decide whether to use LIFO or FIFO for inventory costing. Compute the gross profit earned by the company for both LIFO and FIFO. FIFO: LIFO: The CEO's bonus is calculated using net income before income taxes. If the CEO wishes to maximize her bonus, which of the following methods would you recommend? If the CEO wishes to maximize her bonus, which of the following methods would you recommend? Alternatively, the CEO desires the method that minimizes income taxes paid by the company in the current year. If income taxes are based on a percentage of net income, which method would you recommend to the CEO? If income taxes are based on a percentage of net income, which method would you recommend to the CEO