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Use the following information to answer questions 18 to 21: Consider the following data for Reed Com pany for the current year: Total S550 264 260 720 Unit Cost Beginning inventory Purchase February 4 Purchase May 15 Purchase October 20 S10 12 13 15 20 48 Sales during the year, 84 units $30 each 18. What is the cost of ending inventory, assuming the LIFO method is used? A. S889 S905 C. 5622 D. S1,172 19. What is cost of goods sold, assuming the FIFO method is used? A. S889 B. S905 C. $622 D. S1,172 20. What is Reed Companys gross profit percentage (rounded) for the year, assuming that ending inventory totaled $685? a. 56% b. 27% C. 40%please help with questions 18-20 and explain how you did it? Im confused for my exam!!

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Answer 18 The Correct Option is (C) $622 ExplanationsL Last-In. First-Out - Value of Ending Invento Date of Invoice Beginning Inventory Purchase on Feb 4 No. of Units| Unit Cost Total Cost $10 $12 $550 $72 $622 Cost of Ending Invento Answer 19 The Correct Option is (B) $905 Explanations Cost of Goods Available for Sale Beginning Inventory Purchase Feb, 4 Purchase May, 15 Purchase Oct, 20 Cost of Goods Available for Sale 55 Units $10 22 Units$12 20 Units $13 48 Units $15 $550 $264 $260 $720 $1,794 First-In. First-Out -Value of Ending Invento Date of Invoice Purchase May, 15 Purchase Oct, 20 No. of Units Unit Cost Total Cost $13 $15 $169 $720 $889 13 48 Cost of Ending Invento Cost of Goods Sold Cost of Goods Available for Sale - Cost of Ending Inventory -$1,794 - $889 - $905

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