Reference no: EM132414196

Global Sales, Inc. (G81), a hypothetical company, sells electric razors at retail. GSI began operations in 2006, during which it purchased 50,000 razors and sold 46,000 razors. The razors were purchased at a cost of €20.00 per unit. In 2007, G51 purchased another 53,000 razors at a cost of €;3_.9? per unit. GSI sold 55,000 razors during 2007 (3,000 of the razors sold were purchased in 2006 and 52,000 sold were purchased in 2007). GSI's sales price for razors was €30.00 per unit in 2006 and €33.00 per unit in 2007.

1. What is the reported cost of goods sold on GSI's income statement for 2007 under the speci?c identi?cation method? What is the carrying value of inventory on GSI's balance sheet at year-end 2007 under the speci?c identi?cation method?

2. What is the reported cost of goods sold on GSI's income statement for 2007 under the weighted average cost method? What is the carrying value of inventory on GSI's balance sheet at year-end 2007 under the weighted average cost method?

3. What is the reported cost of goods sold on GSI's income statement for 2007 under the FIFO cost method? What is the carrying value of inventory on GSI's balance sheet at year-end 2007 under the FIFO method?