Give the answer of 4.(a) and 4.(b). Grother Company uses the periodic inventory method and had the following inventory information available:1/11/207/2510/201.2.3.4. (a)Beginning InventoryPurchase4. (b)PurchasePurchaseUnits1005001003001,000Unit Cost$4$5$7$8Total CostA physical count of inventory on December 31 revealed that there were 350 units on hand.Answer the following independent questions.$4002,5007002,400$6,000Assume that the company uses the FIFO method. The value of the ending inventory atDecember 31 isAssume that the company uses the average-cost method. The value of the endinginventory on December 31 isAssume that the company uses the LIFO method. The value of the ending inventory onDecember 31 isDetermine the difference in the amount of income that the company would havereported if it had used the FIFO method instead of the LIFO methodWould income have been greater or less?$

FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…

Answered: 2,400 $6,000 mere were 350 units 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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Consider a position of two purchased calls (AT&T, three months, K30) and one written put (AT&T,…

A: Delta is a commonly used Greek letter in options trading to represent the sensitivity of an option's…

Q: Thank you for your answer, can you explain to me why n is negative in this formula?…

A: Here, The price of the bond is P. The periodic coupon payments are C. The rate of return is r. The…

Q: Using the above information, calculate efn

A: Here, Sales is $48,800 Assets is $53,650 Spontaneous Liability (Accounts Payable) is $2,400 % Change…

Q: In(n) In(1+r)

A: The natural logarithm (ln) of a number is its logarithm to the base e, where e is euler's number…

Q: What is the after announcment? This is from question a.

A: Debt Value = $2,700,000Current Debt-to-equity ratio = 30%Increased Debt-to-equity ratio = 50%EBIT =…

Q: What are the cell #s in the NPV formula?

A: The difference between the present value of cash inflows and the present value of cash outflows over…

Q: Give an example of each.

A: Cost standard example: The estimation to regulate the entire direct material cost standard and…

Q: If

A: n(A) = 150n (B) = 150 (A ∪ B) = 210

Q: the difference between a W-4 form and W-2 form.

A: Form W-4: Employee’s withholding allowance certificate. This form is filled by employees for their…

Q: b/ Which theory best explains these three term structure facts?

A: The three term structure facts that are commonly referenced in finance literature are: The yield…

Q: is part b answered in this?

A: Ledger posting. : When any transaction is made journal entry is passed, after that those entries are…

Q: Let f(x) = √√x, g(x) = x + 8 and h(x) = 5. (f + g)(16) X Compute the following function value.

Q: Is DDM and CAPM suppose to be the same numbe

A: There are many ways to do valuation of stock one is DDM and other is CAPM these are two important…

Q: PV = PMT. I-LIti)-n ニ

A: The concept of present value asserts that a sum of money today is worth more than the same sum in…

Q: What are the four basic assumptions underlie GAAP?

Q: When you were born, your grandparents got together and invested $300 every six months in…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: confused on how the number for D is calculated

A: Bad debt is calculated on the value of sales receivable during the period.Bad debt is an expense…

Q: Question 2 If A is an m x n matrix and B is a px q matrix and BA is a p x n matrix, what must be…

A: The question is asking about the conditions that must be met for the multiplication of two matrices,…

Q: The linear kos function is written by the equation Y = a + bX. of the equation, X represents.....

A: Linear functions can be defined as the graph that is a straight line with equation of: Y = a = bX. A…

Q: A $385,000 house is to be purchased for 25% down and monthly payments of $1200 for as long as…

A: PV is the current worth of cash flows that are expected to occur in the future.

Q: How did you compute what the "R" value was in the equation?

A: IRR is the internal rate of return and is the break even rate of return at present value of cash…

Q: Is there a way you can provide an example for number 3?

A: Break-even level is computed by the company at which company has sufficient amount of revenue…

Q: Determining current portion of long-term note payable On January 1, Irving Company purchased…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Why is this formula very important F = P( I + i)?

A: Time value of money (TVM) The thought cash you at present have would, later on, be worth more than a…

Q: what is 2 plus eight ?

A: The given sentence "2 plus eight" can be symbolically represented as 2+8. Thus, 2+8 is 10.

Q: What is The NPV for Machine B=

A: NPV will be calculated as follows:-NPV =

Q: Float is defined as the difference between the:

A: The formula to compute float as follows:

Question

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?
$

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduce to FIFO and LIFO METHOD

VIEW

Step 2: Working for units sold

VIEW

Step 3: Working for cost of goods sold under FIFO

VIEW

Step 4: Working for cost of goods sold under LIFO

VIEW

Step 5: Working for difference in net income between FIFO and LIFO METHOD

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 6 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

what are the solutions for questions 4 & 5?
is thsi correct?
both a and b
for question 3b under step 3: There are two things to the power of n but then you plugged in two different n values. why is that? why is one of them to the power of 9?
how do I put it under the collums of the a,b,c,d, etc... which goes under which I'm confused on that