Martha's Grain Shop recorded the following purchases and sales of fertilizer during the past year: Assume that

Question:

Martha's Grain Shop recorded the following purchases and sales of fertilizer during the past year:

Assume that Martha's Grain Shop 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 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 Martha's Grain Shop? Round your answers to the nearest whole number and assume the periodic inventory system?

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...