Periodic Inventory System and Inventory Costing Methods P7. DiPaolo's inventory, purchases, and sales for March and April follow. The company closes its books at the end of each month. It uses the periodic inventory system. REQUIRED 1. Compute the cost of the ending inventory on March 31 and April 30 using the average-cost method. In addition, determine cost of goods sold for March and April. (Round unit costs to the nearest cent.) 2. Compute the cost of the ending inventory on March 31 and April 30 using the FIFO method. Also determine cost of goods sold for March and April. 3. Compute the cost of the ending inventory on March 31 and April 30 using the LIFO method. Also determine cost of goods sold for March and April. 4. ACCOUNTING CONNECTION > Do the cash flows from operations for March and April differ depending on which inventory costing method is used-average-cost, FIFO, or LIFO? Explain. Perpetual Inventory System and Inventory Costing Methods P8. Use the data provided in P7, but assume that the company uses the perpetual inventory system. (Hint: In preparing the solutions, it is helpful to determine the balance of inventory after each transaction, as shown in the Business Insight: Concepts and Applications feature in this chapter.) REQUIRED 1. Determine the cost of ending inventory and cost of goods sold for March and April using the average-cost method. (Round unit costs to the nearest cent.) 2. Determine the cost of ending inventory and cost of goods sold for March and April using the FIFO method. 3. Determine the cost of ending inventory and cost of goods sold for March and April using the LIFO method. 4. BUSINESS APPLICATION D Assume that this company grows for many years in a long period of rising prices. How realistic do you think the balance sheet value for inventory would be and what effect would it have on the inventory turnover ratio