Question

In chronological order, the inventory, purchases, and sales of a single product for a recent month are as follows (see attached).

1.Using the periodic inventory system, compute the cost of ending inventory, cost of goods sold, and gross margin. Use the average-cost, FIFO, and LIFO inventory costing methods. (Round unit costs to cents and totals to dollar.)

2.Explain the differences in gross margin produced by the three methods.

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