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Periodic Inventory System and Inventory Costing Methods
In chronological order, the inventory, purchases, and sales of a single product for a recent month are as follows:
Units Amount per UnitJune 1 Beginning inventory 150 $ 604 Purchase 400 6612 Purchase 800 7216 Sale 1,300 12024 Purchase 300 78
Using the periodic inventory system, compute the cost of ending inventory, cost of goods sold, and gross margin. Use the average-cost, FIFO, and LIFO inventory costing methods. Explain the differences in gross margin produced by the three methods. Round unit costs to cents and totals to dollars.
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