Question

Martinez Co. reported the following current-year data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 150 units—50 from each of the last three purchases.

 Jan. 1 Beginning inventory 96 units @ \$2.00 = \$ 192 Mar. 7 Purchase 220 units @ \$2.25 = 495 July 28 Purchase 544 units @ \$2.50 = 1,360 Oct. 3 Purchase 480 units @ \$2.80 = 1,344 Dec. 19 Purchase 160 units @ \$2.90 = 464 Totals 1,500 units \$ 3,855

 Determine the cost assigned to ending inventory and to cost of goods sold for the following. (Do not round intermediate calculations and round your answers to 2 decimal places.)

 Ending inventory Cost of goods sold (a) Specific identification (b) Weighted average (c) FIFO (d) LIFO
+

Which method yields the highest net income?

 Weighted average LIFO FIFO Specific identification

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