Part I Answer the following questions based on the information below:
Beginning Inventory 1,000 units
Purchases 1,500 units
Units available for sale 2,500 units
Units sold 2,200 units
Ending inventory 300 units
Inventory Purchases History:
Beginning Inventory value 1,000 units @ $2.00
March 1 Purchase 700 units @ $4.00
March 12 Purchase 600 units @ $6.00
March 23 Purchase 200 units @ $8.00
1. Calculate the cost of goods sold under the FIFO inventory method. (12 points)
2. Calculate the ending inventory monetary value under the FIFO inventory method. (12 points)
3. Calculate the cost of goods sold under the LIFO inventory method. (12 points)
4. Calculate the ending inventory monetary value under the LIFO inventory method. (12 points)
5. Calculate the cost of goods sold under the Average Cost inventory method. Round to the nearest cent. (12 points)
6. Calculate the ending inventory monetary value under the Average Cost inventory method. Round to the nearest cent. (12 points)
Part II Answer the questions below based on the following information.
Sales Discounts $ 25,000
Operating Expenses $ 76,000
Sales Returns and Allowances $ 10,000
Total Sales $500,000
Cost of Goods Sold $250,000
1. Calculate net sales. (9 points)
2. Calculate gross profit. (9 points)
3. Calculate net income. (10 points)