Portias Parts Shop recorded the following purchases and sales during the past year: Assume that the company

Question:

Portia€™s Parts Shop recorded the following purchases and sales during the past year:

Assume that the company sold all of the June 15 purchase and 100 cases each from the January 1 beginning inventory, the October 15 purchase, and the December 15 purchase.
Determine the costs that should be assigned to ending inventory and cost of goods sold according to the periodic inventory method under each of the assumptions that follow. (Round to the nearest dollar and assume the periodic inventory system.)
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.
5. What conclusions can be drawn about the effect of each method on the income statement and the balance sheet of Portia€™s PartsShop?

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...