Halliburtrap Company uses the periodic inventory method and had the following inventory information available:

Units Unit Cost Total Cost

1/1 Beginning Inventory 80 $6 $ 480

1/20 Purchase 300 $8 2,400

7/25 Purchase 500 $9 4,500

10/20 Purchase 100 $11 1,100

980 $8,480

A physical count of inventory on December 31 revealed that there were 135 units on hand.

Instructions

Answer the following independent questions and show computations supporting your answers.

1. Assume that the company uses the FIFO method. The value of cost of goods sold during the year is $__________.

2. Assume that the company uses the Average-Cost method. The value of the ending inventory on December 31 is $__________.

3. Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $__________.

4. If the company had used the FIFO method instead of the LIFO method for the year, would net income have been greater or less than FIFO under LIFO?