Gary's Parts Shop recorded the following purchases and sales during the past year: Assume that Gary's Parts

Question:

Gary's Parts Shop recorded the following purchases and sales during the past year:

Assume that Gary's Parts Shop sold all of the June 15 purchase and 100 cases each from the January 1 beginning inventory, the October 15 purchases, and the December 15 purchase. Determine the costs that should be assigned to ending inventory and cost of goods sold under each of the following assumptions:
(1) Costs are assigned by the specific identification method;
(2) Costs are assigned by the average-cost method;
(3) Costs are assigned by the FIFO method;
(4) Costs are assigned by the LIFO method. What conclusions can be drawn about the effect of each method on the income statement and the balance sheet of Gary's Parts Shop? Round your answer to the nearest whole number and assume the periodic inventorysystem.

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...