Health World began January with an inventory of 50 crates of vitamins that cost a total of… 1 answer below »

Health World began January with an inventory of 50 crates of vitamins that cost a total of $1,000. During the month, Health World purchased and sold merchandise on account as follows:
Purchase 1 . . . . . . . .100 crates @ $ 25
Sale 1 . . . . . . . . . . . .130 crates @ $ 40
Purchase 2 . . . . . . . . 90 crates @ $ 30
Sale 2 . . . . . . . . . . . .100 crates @ $ 50
1.Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods, ending merchandise inventory and gross profit
2. Prepare a perpetual inventory record using the weighted-average inventory costing, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit(round weighted average cost per unit to the nearest cent and all other amounts to the nearest dollar)
3. If the business wanted to pay the least amount of income taxes possible, which method would it choose?

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