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

Transcribed Image Text:

3. McQuire Company uses the periodic inventory method and had the following inventory information available: Units Unit Cost Jan. 1 Beginning Inventory 200 $4 Total Cost $ 800 Jan. 20 Purchase 400 $5 2,000 July 25 Purchase 300 $7 2,100 Oct. 20 Purchase 400 $8 3,200 1,300 $8,100 A physical count of inventory on December 31 revealed that there were 600 units on hand. Instructions The AO (s Answer the following independent questions and show calculations supporting your answers. 1. Assume that the company uses the FIFO cost flow assumption. The value of the ending inventory at December 31 is $ is go (d 2. Assume that the company uses the average cost flow assumption. The value of the ending inventory on December 31 is $ 000,18 3. Assume that the company uses the LIFO cost flow assumption. The value of the ending nl (3 inventory on December 31 is $ tibe lw bas eboog veqmoo mipient ed avar ved! 4. Determine the difference in the amount of income that the company would have reported if it had used FIFO instead of Average. Would income have been greater or less? nempiendo no tuo vi ISH (b 3. McQuire Company uses the periodic inventory method and had the following inventory information available: Units Unit Cost Jan. 1 Beginning Inventory 200 $4 Total Cost $ 800 Jan. 20 Purchase 400 $5 2,000 July 25 Purchase 300 $7 2,100 Oct. 20 Purchase 400 $8 3,200 1,300 $8,100 A physical count of inventory on December 31 revealed that there were 600 units on hand. Instructions The AO (s Answer the following independent questions and show calculations supporting your answers. 1. Assume that the company uses the FIFO cost flow assumption. The value of the ending inventory at December 31 is $ is go (d 2. Assume that the company uses the average cost flow assumption. The value of the ending inventory on December 31 is $ 000,18 3. Assume that the company uses the LIFO cost flow assumption. The value of the ending nl (3 inventory on December 31 is $ tibe lw bas eboog veqmoo mipient ed avar ved! 4. Determine the difference in the amount of income that the company would have reported if it had used FIFO instead of Average. Would income have been greater or less? nempiendo no tuo vi ISH (b