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2,400 $6,000 mere were 350 units on hand. me value of the ending inventory at thod. The value of the ending $ that the company would have he LIFO method $ me value of the ending inventory on $ $

2,400 $6,000 mere were 350 units on hand. me value of the ending inventory at thod. The value of the ending $ that the company would have he LIFO method $ me value of the ending inventory on $ $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Give the answer of 4.(a)  and 4.(b). 

Grother Company uses the periodic inventory method and had the following inventory information available: 1/1 1/20 7/25 10/20 1. 2. 3. 4. (a) Beginning Inventory Purchase 4. (b) Purchase Purchase Units 100 500 100 300 1,000 Unit Cost $4 $5 $7 $8 Total Cost A physical count of inventory on December 31 revealed that there were 350 units on hand. Answer the following independent questions. $400 2,500 700 2,400 $6,000 Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is Assume that the company uses the average-cost method. The value of the ending inventory on December 31 is Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method Would income have been greater or less? $
Transcribed Image Text:Grother Company uses the periodic inventory method and had the following inventory information available: 1/1 1/20 7/25 10/20 1. 2. 3. 4. (a) Beginning Inventory Purchase 4. (b) Purchase Purchase Units 100 500 100 300 1,000 Unit Cost $4 $5 $7 $8 Total Cost A physical count of inventory on December 31 revealed that there were 350 units on hand. Answer the following independent questions. $400 2,500 700 2,400 $6,000 Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is Assume that the company uses the average-cost method. The value of the ending inventory on December 31 is Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method Would income have been greater or less? $
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