Assume that Rb Tire Store completed the following perpetual inventory transactions for a line of tires:
Dec 1. Beginning merchandise inventory 20 tires @ $63 each
Dec 11. Purchase 12 tires @ $87 each
Dec 23 Sale 18 tires @ 102 each
Dec 26 Purchase 14 tires @ $90 each
Dec 29 Sale 16 tires @ $102 each.
Requriement 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method.
Reqruiement 2. Compute cost of goods sold and gross profit using the LIFO inventory costing method.
Requirement 3. Compute cost of goods sold and gross profit using the weighted-average inventory costing method. (Round weighted average cost per unit to the nearest cent and all other amounts to the nearest dollar.)
Requirement 4. Which method results in the largest gross profit, and why?