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? $

College Accounting (Book Only): A Career Approach
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Chapter11: Work Sheet And Adjusting Entries
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Problem 3E: Basga Company uses the periodic inventory system. Beginning inventory amounted to 241,072. A...
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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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