Alternative Inventory Methods Garrett Company has the following transactions during the months of April and May: Date Transaction Units Cost/Unit Balance 300 April 1 17 Purchase 200 $5.10 25 Sale 150 100 5.70 28 Purchase May 5 Purchase 250 5.10 18 Sale 300 22 Sale 50 The cost of the inventory on April 1 is $5, $4, and $2 per unit, respectively, under the FIFO, average, and LIFO cost flow assumptions. Required: 1. Compute the inventories at the end of each month and the cost of goods sold for each month for the following alternatives: a. FIFO periodic Cost of Goods Sold Ending Inventory April $ 750 $ 3,360 x May $ 1,650 X $ 2,885 X D. FIFO perpetual Cost of Goods Sold Ending Inventory April $ 750 $ 3,360 X May 16 Y ARS C. LIFO periodic Cost of Goods Sold Ending Inventory April $ 765 X $ 1,845 x May$ 1,865 X $ 1,255 x d. LIFO perpetual (Round your intermediate calculations to the nearest cent.) Cost of Goods Sold Ending Inventory April $ 765 $ 1,845 X May $ 1,865 X $ 1,255 X e. Weighted average (Round unit costs to 4 decimal places and final answers to the nearest dollar.) Cost of Goods Sold Ending Inventory April $ 676.8750 x $ 2,933.12 x May $ 1,899.72 X $ 2,985.22 X f. Moving average (Round unit costs to 2 decimal places and final answers to nearest dollar) Cost of Goods Sold Ending Inventory April $ 647.1450 x $ 2,962.86 x May $ 1,648.04 X $ 2,589.80 X 2. Reconcile the difference between the LIFO periodic and the LIFO perpetual results. If an amount is zero, enter "0". April Cost of Goods Sold Ending Inventory Difference $ 0 x $ 0 X May 1,899.72 X 2,985.22 1. Moving average (Round unit costs to 2 decimal places and final answers to nearest dollar) Cost of Goods Sold Ending Inventory April 647.1456 X 2,962.86 x May 1,648.04 * 2,589.80 x 2. Recondle the difference between the LIFO periodic and the LIFO perpetual results. If an amount is zero, enter ** Cost of Goods Sold Ending Inventory Difference April May Cost of Goods Sold Ending Inventory Differences 0 X 5 under IRS because 3.1 Garrett uses IFRS, which of the previous alternatives would be acceptable, and why? If Garrett Company uses IFRS, it may report its inventory under tro average, or specific identification It may not use UFO it is not consistent with any presumed physical now or inventory. Also, FIFOX is not allowed for tax purposes in most other countries, so there is no tax incentive for a company to use FIFO * Note that companies that use IFRS and have roing inwentory costs will report a higher income because they include holding gains in income la FIFO periodic