Question: Question 4 Inventory Valuation: GHI Corp. uses FIFO method for inventory valuation. Below are the inventory details for December 2023. Beginning Inventory: 500 units @

Question 4

Inventory Valuation: GHI Corp. uses FIFO method for inventory valuation. Below are the inventory details for December 2023.

  • Beginning Inventory: 500 units @ $10 each
  • Purchases:
    • 300 units @ $12 each
    • 400 units @ $11 each
  • Ending Inventory: 600 units

Requirements:

  1. Calculate the cost of goods available for sale.
  2. Compute the cost of goods sold.
  3. Determine the ending inventory value.
  4. Analyze the impact on ending inventory if the company switched to LIFO method.

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