During 2015, Noval Company sells 270 units of inventory for $ 100 each. The company has the

Question:

During 2015, Noval Company sells 270 units of inventory for $ 100 each. The company has the following inventory purchase transactions for 2015.

Required:
1. Calculate ending inventory, cost of goods sold, and gross profit for 2015, assuming the company uses LIFO with a periodic inventory system.
2. To comply with IFRS, the company decides to instead account for inventory using FIFO. Calculate ending inventory, cost of goods sold, and gross profit for 2015.
3. Explain the effects in the company€™s income statement and balance sheet of using FIFO instead of LIFO to account forinventory.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... 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...