E8-13B (L03) (Compute FIFO, LIFO, Average CostPeriodic) Presented below is information related to radios for the Singles Company for the month of March.

Instructions

(a) Assuming that the periodic inventory method is used, compute the inventory cost at March 31 under each of the following cost flow assumptions.

(1) FIFO.

(2) LIFO.

(3) Weighted-average.

(b) Answer the following questions.

(1) Which of the methods used above will yield the lowest figure for gross profit for the income statement? Explain why.

(2) Which of the methods used above will yield the lowest figure for ending inventory for the balance sheet? Explain why.

Date Transaction Units in Unit Cost Toa March 1 Balance 600 Unit Sold Selling Price Tl S8.50 S 5,100 0 8.60 8,600 6 Purchase 1,000 11.00 S 5,500 7 Sale 10 Sale 12 Purchase 1,000 9.00 9,000- 15 Sale 18 Purchase 200 22 Sale 25 Purchase 300 30 Sale 500 500 600 700 200 1.005,500- 11.40 6,840 12.008,400 12.00 2,400 9.10 1,820 2 9.05 2,715 Totals 3,100 9 S27,235 2,500 $28,640+