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Trista Toys had the following goods available for the last accounting period:
Beginning Inventory 600 units @ $10
Purchases (in order from first to last) 1,000 units @ $11
900 units @ $12
700 units @ $14
Sales for the period were 1,900 units
1. Compute the inventory balance and the cost of goods sold at the end of the accounting period using average cost, FIFO, and LIFO.
2. Which method shows the highest ending inventory?
3. Which methods shows the highest costs of goods sold differ under the three methods of inventory valuation.
4. Explain why ending inventory and cost of goods sold differ under the three methods of inventory valuation.
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