Question

Mojo Industries tracks the number of units purchased and sold throughout each ad method at the end of each period, as if it uses a periodic Inventory system. Assum Information at the end of the accounting period, January 31. The inventory's selling Unit Cost $3.00 Total cost $ 600 points TEAations Invory, January 1 Sale, January 10 Purchase, January 12 Sale, January 17 Purchase, January 26 Units 200 (150) 250 (100) 50 3.50 875 8 014300 4.50 225 Assume that for Specific identification method the January 10 sale was from the bed the January 12 purchase. Required: References 1. Compute the amount of goods available for sale, ending Inventory, and cost of Inventory costing methods: (Round your intermediate calculations to 2 decimal amount.) Available for Sale Ending Inventory Cost of Goods a Weighted average cost b. First in first-out c.Last-In, first-out d. Specific identification | 2.a. or the four methods, which will result in the highest gross profit? Weighted average cost First in, first-out Last-in, first-out C riteiten

Answer 1

Correct Answer:

		Amount of goods available for sale	ending inventory	cost of goods sold
A	Weighted Average	$          1,700.00	$           850.00	$               850.00
B	FIFO	$          1,700.00	$           925.00	$               775.00
C	LIFO	$          1,700.00	$           775.00	$               925.00

FIFO will result in the highest gross profit.

Note: information regarding specific identification is not visible in the question image, therefore unable to solve for that part.

End of answer.

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