Mojo Industries tracks the number of units purchased and

sold #2761
Mojo Industries tracks the number of units purchased and sold throughout each accounting
period but applies its inventory costing method at the end of each period, as if it uses a periodic
inventory system. Assume its accounting records provided the following information at the end
of the accounting period, January 31, 2012. The inventory's selling price is $9 per
unit.Required:1. Compute the amount of goods available for sale, ending inventory, and cost of
goods sold at January 31, 2012, under each of the following inventory costing methods:a.
Weighted average cost.b. First-in, first-out.c. Last-in, first-out.d. Specific identification, assuming
that the January 10 sale was from the beginning inventory and the January 17 sale was from
the January 12 purchase.2. Of the four methods, which will result in the highest gross profit?
Which will result in the lowest income taxes?View Solution:
Mojo Industries tracks the number of units purchased and sold

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