Golden Eagle Company began operations in 2014 by selling a single product. Data on purchases and sales for the year were as follows: Purchases: Date Units Purchased Unit Cost Total Cost April 6 31,000...

Golden Eagle Company began operations in 2014 by selling a single product. Data on purchases and sales for the year were as follows:

Purchases:

SALES:

On January 2015, the president of the company, Connie Kilmer, asked for your advise on costing the 32,000 unit physical inventory that was taken on Decemer 31, 2014. Moreover, since the firm plans to expand its product line, she asked for your advise on the use of a perpetual inventory system in the future.

INSTRUCTION:

1. Determine the cost of the December 31, 2014 inventory under the periodic system using the (a) first in, first out method, (b) last in first out method, (c ) weighted average cost method.


2. Determine the gross profit for the year under each of the three methods in (1).