Fill in the table using the scenario in the information provided for 16-76

Beginning Inventory + Purchases (-) Ending inventory = Cost of Goods sold; SO >>>>> Beginning Inventory + Purchases (-) Cost of Goods sold = Ending inventory) Hint, hint.

	Beginning Inventory	inventory purchases	available purchases	COGS	Ending inventory
Scenario 1 ($12 bag)
FIFO	$200,000	$360,000	$560,000
LIFO	$200,00	$360,000	$500,000
Scenario 2 ($8bag)
FIFO	$200,000	$240,000	$440,000
LIFO	$200,000	$240,000	$440,000

6-76 Analyzing Differences Between Inventory Valuation Methods Goal: Create an Excel spreadsheet to analyze differences between inventory valuation methods dur- ing inflationary and deflationary economies. Use the results to answer questions about your findings. ing inflationary and deflationary economies. Use the results to answer questions about your findings. Scenario: The Omaha Fertilizer Company has asked you to compute its cost of goods sold and end ing inventories for 20X1 using both FIFO and LIFO inventory valuation methods. Your computations will include scenarios for both rising and declining purchase prices. The company has a beginning inventory balance on January 1, 20X1, of 20,000 bags purchased at $10 per bag. For Scenario 1, assume that the company purchased 30,000 bags of fertilizer at $12 per bag in 20X1. For Scenario 2, assume that the company purchased 30,000 bags of fertilizer at $8 per bag in 20X1. The company sold 28,000 bags of fertilizer at $17 per bag during 20X1 Note: This scenario is based on data in General Exercises and Problems 16-60. It requires study of Appendix 16A When you have completed your spreadsheet, answer the following questions 1. In scenario 1, which assumes rising prices, which method's ending inventory most accurately reflects current replacement cost? Why? 2. In scenario 2, which assumes declining prices, which method's ending inventory most accurately reflects current replacement cost? Why? 3. Does LIFO always show the highest cost of goods sold (COGS)? Explain