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Which method maximizes net income

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Reference no: EM132569320

UM Watches specialises in designer watches and leather goods. Assume that UM Watches began June holding 10 wristwatches that cost $50 each. During June 2017, UM Watches bought and sold inventory as follows:

3, June Sold 8 units for $100

16 Purchased 10 units at $56 each

23 Sold 8 units for $100 each

Required:

Question 1) Compute the Cost of Goods Sold & Ending Inventory using the Inventory Cost- Flow Assumptions method:

-FIFO

-LIFO

-Weighted-Average

Question 2) How much the Gross Profit for each method?

Question 3) Which method maximizes net income? Which method minimizes income taxes?

Reference no: EM132569320

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