EXPLAIN

A(1) 1. Transactions for the month of June were: Purchases June 1 (balance) 3200 @ $3.30 3 8730 @ 3.20 7 4800 @ 3.40 15 7220 @ 3.50 22 2040 @ 3.60 There are 5,400 units of the item in the physical inventory at June 31. Assuming that periodic inventory records are kept in units only, the cost of the ending inventory on a LIFO basis is A.$17,600 B.$69,830 C.$68,326 D.$19,104 E.$7,344 Inventory X Date Quantity Cost Total Cost 2.In 2017, ending inventory is overstated. What is the effect of the error on net income in 2017 and 2018? A.Net income is understated in 2017 and 2018. B.Net income is overstated in 2017 and understated in 2018. C.Net income is understated in 2017 and overstated in 2018. D.Net income is overstated in 2017 and 2018. 3.In a period of falling prices, which inventory method generally provides the greatest amount of net income? A.FIFO. B.LIFO. C.Specific identification. D.Average cost. E.FIFO and Average cost