Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 4) determine the difference in the amount of incom

4) Determine the difference in the amount of income that the company would have reported...

50.1K

Verified Solution

Question

Accounting

4) 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?
image
Ed 35. Grother Company uses the periodic inventory mathod and had the following inventory information available: Unit Total Units Cost Cost 1/1 Beginning 100 $4 $ 400 Inventory 1/20 Purchase 500 2,500 7/25 Purchase 100 $7 700 10/20 Purchase 300 $8 2,400 1.000 $6.000 $5 A physical count of inventory on December 31 revealed that there were 325 units on hand. Instructions Answer the following independent questions and show computations supporting your answers. 1) Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is $ 2) Assume that the company uses the average cost method. The value of the ending inventory on December 31 is $ 3) Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $ 4) Determine the difference in the amount of income that the company

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

1. Consider the Following 10-year project: Year Cash Flow 0 -30000 1 2500 2 5000 3 6750 4 7000 5 7250 6 6000 7 6250 8 8000 9 3750 10 2000 Complete the following questions on excel: What is the Payback Period...

Biology
1.2K views

What are some solutions to do when a team member (at school, work, etc..) in your...

Accounting
1.2K views

Problem 6-20 CVP Applications: Break-Even Analysis; Cost Structure; Target Sales [LO6-1, LO6-3, LO6-4, LO6-5, LO6-6, LO6-8] Northwood Company...

Biology
1.2K views

Read the following lines and answer the question given below Convict Ah thanks thanks Monseigneur...

Physics
1.2K views

26 The plot of velocity v versus displacement x of a particle executing simple harmonic...

Basic Math
1.2K views

The development of financial plan includes O retirement plan O estate plan O long term...

Basic Math
1.2K views

ructions equation of the tangent line to a

Statistics
1.2K views

Given these parallel boxplots which of the statements below is incorrect A B T 5...

Accounting
1.2K views

[The following information applies to the questions displayed below.] The stockholders'...

Accounting
1.2K views

What are the main component accounts of the current account? Give one debit and...

Accounting
1.2K views

1. In considering a special order that will enable a company to make use of...

Accounting
1.2K views

Omari Company proauces and sells various types of beach toys and uses the perpetual inventory...