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Sarasota Company uses the periodic inventory method and had the following inventory information available: Units...

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Accounting

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Sarasota Company uses the periodic inventory method and had the following inventory information available: Units 1/1 100 1/20 7/25 10/20 Beginning Inventory Purchase Purchase Purchase 500 115 285 1,000 Unit Cost $3 $4 $2 $6 Total Cost $300 2,000 230 1,710 $4,240 1. A physical count of inventory on December 31 revealed that there were 385 units on hand. Answer the following independent questions. (Round average cost per unit to 2 decimal places, eg. 5.25 and final answers to decimal places, eg. 2,520.) 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 4. (a) 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? (b) 2. 3. $ $ Greater 4

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