$40$ POINTS AND TIME $30$ minutes

$($ROUND ANSWERS TO TWO DECIMAL POINTS$)$

Hendricks Company's record of transactions for the month of June was as follows.

Instructions

TO RECEIVE CREDIT FOR THE ITEMS BELOW YOU MUST SHOW YOUR WORK AND ANY CALCULATIONS:

Instructions

TO RECEIVE CREDIT FOR THE ITEMS BELOW YOU MUST SHOW YOUR WORK AND ANY CALCUL$$TIONS:

a$.$ Assuming that periodic inventory records are kept, compute the inventory at June $30$ using $(1)$ LIFO and $(2)$ averagecost.

b$.$ Assuming that perpetual inventory records are kept, determine the inventory using $(1)$ FIFO and $(2)$ LIFO $(3)$ average cost

c$.$ Compute cost of goods sold assuming PERIODIC inventory procedures and inventory priced at FIFO.

d$.$ In an inflationary period, which inventory method$-$FIFO, LIFO, or average$-$cost$-$will show the highest net income? Why?