a.

FIFO
Gross Profit Ending Inventory
$75 - $40 = $35 $42 + $44 = $ 86

b.LIFO
Gross Profit Ending Inventory
$75 - $44 = $31 $40 + $42 = $ 82

c.Weighted Average Cost

Gross Profit Ending Inventory
$75 - $42 = $33 $42 + $42 = $ 84
a. FIFO
Inventory Cost
Quantity Unit Cost Total Cost
23 162 3.726
Total $3,726

b. LIFO
Inventory Cost
Quantity Unit Cost Total Cost
23 135 3.105
Total $3,105

c. Weighted Average Cost

Inventory Cost
Quantity Unit Cost Total Cost
23 150 3450
Total $3,450
Average Cost = $13.500 : 90 Unit = $150
1. FIFO

Model Quantity Unit Cost Total Cost

A10 4 76 304
2 70 140
B15 6 184 1104
2 170 340
E60 5 70 350
G83 9 259 2331
J34 15 270 4050
M90 3 130 390
2 128 256
Q70 7 180 1260
1 175 175
Total $10700

2. LIFO

Model Quantity Unit Cost Total Cost

A10 4 64 256
2 70 140
B15 8 176 1408
E60 3 75 225
2 65 130
G83 7 242 1694
2 250 500
J34 12 240 2880
3 246 738
M90 2 108 216
2 110 220
1 128 128
Q70 5 160 800
3 170 510
Total $9845

3. Weighted Average Cost

Model Quantity Unit Cost Total Cost

A10 6 70 420
B15 8 174 1392
E60 5 69 345
G83 9 253 2277
J34 15 258 3870
M90 5 121 605
Q70 8 172 1376
Total $10285
4.

During periods of rising prices, the LIFO method will result in a lower cost of inventory, a greater amount of cost of
merchandise sold, and a lesser amount of net income than the other two methods. For Dymac Appliances, the LIFO
method would be preferred for the current year, since it would result in a lesser amount of income tax.