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P$7-3($Algo$)$ Evaluating Four Alternative Inventory Methods Based on Income and Cash Flow LO$7-2,7-3$

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

At the end of January of the current year, the records of Donner Company showed the following for a particular item that

sold at $$18\mathrm{.}60$ per unit:

P$7-3$ Part $1$

Required:

$1$a$.$ Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average cost,

FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning inventory

and the second sale was selected from the January $12$ purchase.

$1$b$.$ Assuming the use of a periodic inventory system, prepare a partial income statement under each method of inventory: $($a$)$ average

cost$,($b$)$ FIFO, $($c$)$ LIFO, and $($d$)$ specific identification. For specific identification, assume that the first sale was selected from the

beginning inventory and the second sale was selected from the January $12$ purchase.

Complete this question by entering your answers in the tabs below.

Req $1$ A

Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average cost,

FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning

inventory and the second sale was selected from the January $12$ purchase. $($Round unit price to $2$ decimal places. Input all

amounts as positive values.$)$

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