Hi, Please help with E8.11. Thank you a. Assuming that the periodic inventory method is used, compute the inventory cost at July 31 undereach of the following cost flow assumptions. (Ignore taxes.)1. FIFO. e aldey2. Weighted-average.b. Answer the following questions.1. Which of the methods used above will yield the highest figure for gross profit for the incomeon statement? Explain why.* Which of the methods used above will yield the highest figure for ending inventory for the state-ment of financial position? Explain why.

Answered: Hi, Please help with E8.11. Thank you

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Accounting

Hi, Please help with E8.11. Thank you

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 7QE

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Hi,

Please help with E8.11. Thank you

a. Assuming that the periodic inventory method is used, compute the inventory cost at July 31 under
each of the following cost flow assumptions. (Ignore taxes.)
1. FIFO. e aldey
2. Weighted-average.
b. Answer the following questions.
1. Which of the methods used above will yield the highest figure for gross profit for the income
on statement? Explain why.
* Which of the methods used above will yield the highest figure for ending inventory for the state-
ment of financial position? Explain why.

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