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Question 1: Brake Company utilizes the perpetual inventory method. Inventory information for Part # AB124 revealed the following for the month of May:
May 1
Balance 245 units @ $8
May 10
Sold 210 @ $23.50
May 11
Purchased 800 units @ $9.50
May 16
Sold 300 @ $23
May 20
Purchased 770 units @ $11
May 26
Sold 350 @ $24.50
Required: Determine the value of ending inventory, cost of goods sold and gross profit under each of the following methods:
(a) LIFO
(b) FIFO
(c) Average Cost
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