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The Divine Merchandising Corporation began March operations with merchandise inventory of 6 units, each of which cost $27. During March, Divine Merchandising made the following purchases: (1) March 4, 12 units @ $28 per unit, (2) March 15, 18 units @ $30 per unit, (3) March 26, 14 units @ $32 per unit. During March the Company sold the following units at a sales price of $48 per unit: March 6, 11 units, March 20, 17 units, March 28, 12 units. Operating expenses in March were $640. The Company estimates its income taxes expense will be approximately 35% of income before taxes.Using the LIFO perpetual inventory method, determine the cost of goods available for sale during March.
Discuss the economic consequences issues that are present in each of the following transaction situations.
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