Detailed comparison of various choices for inventory accounting. Burton Corporation commenced retailing operations on January 1, 2007. Purchases of merchandise inventory during 2007 and 2008 appear...

Detailed comparison of various choices for inventory accounting. Burton Corporation commenced retailing operations on January 1, 2007. Purchases of merchandise inventory during 2007 and 2008 appear next: Quantity Acquisition Purchased Unit Price Cost 1/10/2007 . . . . . . . . . . . . . . . . . . . . . . . 600 $10 $ 6,000 6/30/2007 . . . . . . . . . . . . . . . . . . . . . . . 200 12 2,400 10/20/2007 . . . . . . . . . . . . . . . . . . . . . . 400 15 6,000 Total 2007 . . . . . . . . . . . . . . . . . . . . . . . 1,200 $14,400 Quantity Acquisition Purchased Unit Price Cost 2/18/2008 . . . . . . . . . . . . . . . . . . . . . . . 500 $14 $ 7,000 7/15/2008 . . . . . . . . . . . . . . . . . . . . . . . 500 12 6,000 12/15/2008 . . . . . . . . . . . . . . . . . . . . . . 800 10 8,000 Total 2008 . . . . . . . . . . . . . . . . . . . . . . . 1,800 $21,000 Burton Corporation sold 1,000 units during 2007 and 1,500 units during 2008. a. Calculate the cost of goods sold for 2007 using a FIFO cost-flow assumption. b. Calculate the cost of goods sold for 2007 using a LIFO cost-flow assumption. c. Calculate the cost of goods sold for 2007 using a weighted-average cost-flow assumption. d. Calculate the cost of goods sold for 2008 using a FIFO cost-flow assumption. e. Calculate the cost of goods sold for 2008 using a LIFO cost-flow assumption. f. Calculate the cost of goods sold for 2008 using a weighted-average cost-flow assumption. g. Will FIFO or LIFO result in reporting the larger net income for 2007? Explain. h. Will FIFO or LIFO result in reporting the larger net income for 2008? Explain.