Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Areas shaded red are wrong answers. I need the right answers, thanks! Monty Company uses the periodic inventory method and had the following inventory information

Areas shaded red are wrong answers. I need the right answers, thanks! image text in transcribed
Monty Company uses the periodic inventory method and had the following inventory information available: Units Unit Cost Total Cost 1/1 Beginning Inventory 102 $4 $408 1/20 Purchase 510 $5 2,550 7/25 Purchase 102 $7 714 10/20 Purchase 306 $8 2.448 1,020 $6,120 A physical count of inventory on December 31 revealed that there were 357 units on hand. Answer the following independent questions. (Round average cost per unit to 2 decimal places, e.g. 5.25 and final answers to O decimal places, e.g. 2,520.) 1. Assume that the company uses the FIFO method. The value of the ending inventory 2,805 at December 31 is 2 Assume that the company uses the average cost method. The value of the ending inventory on December 31 is $ 2,677.50 3 Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $ 16,683 4.(a) Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method $ -1112 4. (b) Would income have been greater or less? Lesser

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Financial Management Federal Information System Controls Audit Manual

Authors: U.S. Government Accountability Office

1st Edition

1289168172, 978-1289168179

More Books

Students also viewed these Accounting questions

Question

=+16.1. 13.91 Suppose that (12) Answered: 1 week ago

Answered: 1 week ago