Hi I need help solving # BE6-4

300 6 Reporting and Analyzing Inventory cost of the ending inventory under (a) the FIFO method and (b) the LIFO method. McLanie uses a periodic inventory system. DO Compute the ending inventory using average-cost. LO 2), AP DO of in tory Explain the financial statement effect of inventory cost flow assumptions. (LO2), tions 1. BE6-3 Data for McLanie Company are presented in BE6-2. Compute the cost of the ending inventory under the average-cost method. (Round the cost per unit to three decimal places.) BE6-4 The management of Milque Corp. is considering the effects of various inventory costing methods on its financial statements and its income tax expense. Assuming that the price the company pays for inventory is increasing, which method will: (a) provide the highest net income? (b) provide the highest ending inventory? (c) result in the lowest income tax expense? (d) result in the most stable earnings over a number of years? BE6-5 In its first month of operation, Hoffman Company purchased 100 units of inven- tory for $6, then 200 units for $7, and finally 140 units for $8. At the end of the month, 180 units remained. Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO. Explain why this amount is referred to as phantom profit. The company uses the periodic method. Con Explain the financial statement effect of inventory cost flow assumptions. (LO 2), AP DO Identify the impact of LIFO sus FIFO. BE6-6 For each of the following cases, state whether the statement is true for LIFO or for FIFO. Assume that prices are rising. (a) Results in a higher quality of earnings ratio. (b) Results in higher phantom profits. (c) Results in higher net income