work B $-$ Graded

Question $5,$ PF$6$A$-32$A $($similar to$)$

HW Score: $48\mathrm{.}06\%,12\mathrm{.}5$ of $26$ points

Part $1$ of $6$

Points: $0$ of $5$

Tomorrows Electronic Center began July with $100$ units of merchandise inventory that cost $$70$ each. During July, the store made the following purchases:

$($Click the icon to view the purchases.$)$

Tomorrows uses the periodic inventory system, and the physical count at July $31$ indicates that $130$ units of merchandise inventory are on hand.

Read the requirements. methods.

FIFO

Ending inventory

Cost of goods sold

Requirements

Determine the ending merchandise inventory and cost of goods sold amounts for the July financial statements using the FIFO, LIFO, and weighted$-$average inventory costing methods.

Sales revenue for July totaled $$29,000.$ Compute Tomorrows's gross profit for July using each method.

Which method will result in the lowest income taxes for Tomorrows? Why? Which method will result in the highest net income for Tomorrows? Why?

Data table

$\backslash$table$[[$Jul$.3,35$ units @ $ $82$ each$],[$Jul$.12,45$ units @ $$84$ each$],[$Jul$.18,75$ units @ $$90$ each$]]$