Story Company’s inventory records for the month of November reve 1 answer below »

Story Company’s inventory records for the month of November reveal the following:
Inventory, November 1 300 units @ $27.00
November 4, purchase 375 units @ $26.50
November 7, sale450 units @ $63.00
November 13, purchase 330 units @ $26.00
November 18, purchase 225 units @ $25.40
November 22, sale 570 units @ $63.75
November 24, purchase 300 units @ $25.00
November 28, sale 165 units @ $64.50
Selling and administrative expenses for the month were $16,200. Depreciation expense was $6,000. Story’s tax rate is 35%.
Required
1. Calculate the cost of goods sold and ending inventory under each of the following three methods assuming a periodic inventory system:
(a) FIFO,
(b) LIFO, and
(c) Weighted average.
2. Calculate the gross profit and net income under each costing assumption.
3. Under which costing method will Story pay the least taxes? Explain your answer.

"Is this question part of your assignment? We can help"

ORDER NOW