Reference no: EM13482128

The following information is given for McHugh Inc. for the month ended October 31,2010. McHugh uses a periodic method for inventory.

Date            Description                  Units               UnitCost

Oct.1         BeginningInventory           60                  25

Oct.9         Purchase                          120                26

Oct.11       Sale                                 100                35

Oct. 17      Purchase                            90                27

Oct.22       Sale                                    60                40

Oct. 25      Purchase                             80                29

Oct. 29      Sale                                   110               40

Calculate: ending inventory, cost of goods sold, gross profit and gross profit rate under each method:

1) FIFO

2) LIFO

3) Average Cost

Compare the results for the three cost flow assumptions.