Would using LIFO produce a higher or lower amount of cost of goods sold? Why?

1. Nash Office Supply (NOS) purchased two Model 303 copiers at different times. The first copier purchased cost $400 and the second copier purchased cost $450. NOS sold one of the copiers for $600. Determine the gross margin on the sale and the ending inventory balance assuming NOS accounts for inventory using (1) FIFO, (2) LIFO, and (3) weighted average.

2. The following information was drawn from the inventory records of Fields, Inc.

Beginning inventory

200 units @ $20

First purchase

400 units @ $22

Second purchase

600 units @ $24

Assume that Fields sold 900 units of inventory.

a. Determine the amount of cost of goods sold using FIFO.

b. Would using LIFO produce a higher or lower amount of cost of goods sold? Why?

3. What are nine features of an internal control system?