Altobelli Company began business in Chicago on March 15, 20X0. The following are Altobellis purchases of inventory:

Question:

Altobelli Company began business in Chicago on March 15, 20X0. The following are Altobelli€™s purchases of inventory:

On May 25, the company sold 130 units, leaving inventory of 120 units. Altobelli Company€™s accountant was preparing a balance sheet for June 1, at which time the replacement cost of the inventory was $12 per unit.
1. Suppose Altobelli Company uses LIFO without applying lower-of-cost-or-market. Compute the June 1 inventory amount.
2. Suppose Altobelli Company uses lower-of-LIFO-cost-or-market. Compute the June 1 inventory amount.
3. Suppose Altobelli Company uses FIFO without applying lower-of-cost-or-market. Compute the June 1 inventory amount.
4. Suppose Altobelli Company uses lower-of-FIFO-cost-or-market. Compute the June 1 inventoryamount.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...