P6-5A You are provided with the following information for Pavey Inc. for

Price: $2.50


P6-5A You are provided with the following information for Pavey Inc. for the month ended
October 31, 2008. Pavey uses a periodic method for inventory.

		Units	Unit Cost or Selling price
1-Oct	Beginning inventory	60	$25.00
9-Oct	Purchase	120	$26.00
11-Oct	Sale	100	$35.00
17-Oct	Purchase	70	$27.00
22-Oct	Sale	60	$40.00
25-Oct	Purchase	80	$28.00
29-Oct	Sale	110	$40.00

Instructions
(a) Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods.
(1) LIFO.
(2) FIFO.
(3) Average-cost.
(b) Compare results for the three cost flow assumptions.