how about the answer of 8.7

Prepare the journal entry to record the shrinkage loss assuming that Software City uses the FIFO flow assumption. 2. Prepare the journal entry to record the shrinkage loss assuming that Software City uses the LIFO flow assumption. 3. Which cost flow assumption (FIFO or LIFO) results in the lowest net income for the period? Would using this assumption really mean that the companys operations are less efficient? Explain. Pemberton Products uses a periodic inventory system. The companys records show the beginning inventory of PH4 oil filters on January 1 and the purchases of this item during the current year to be as follows 1. Prepare the journal entry to record the shrinkage loss assuming that Software City uses the FIFO flow assumption. 2. Prepare the journal entry to record the shrinkage loss assuming that Software City uses the LIFO flow assumption. 3. Which cost flow assumption (FIFO or LIFO) results in the lowest net income for the period? Would using this assumption really mean that the companys operations are less efficient? Explain. Pemberton Products uses a periodic inventory system. The companys records show the beginning inventory of PH4 oil filters on January 1 and the purchases of this item during the current year to be as follows Jan. 1 Beginning inventory 9 units @ $3.00 $ 27.00 Feb. 23 Purchase 12 units @ $3.50 42.00 Apr. 20 Purchase 30 units @ $3.80 114.00 May 4 Purchase40 units @ $4.00 160.00 Nov. 30 Purchase 19 units @ $5.00 95.00 Totals110 units $438.00 2011 2010 Sales $2,000,000 $1,500,000 Cost of goods sold1,250,000 900,000 Gross profit on sales $ 750,000 $ 600,000 Operating expenses400,000 350,000 Net income $ 350,000 $ 250,000 A physical count indicates 20 units in inventory at year-end. Determine the cost of the ending inventory on the basis of each of the following methods of inventory valuation. (Remember to use periodic inventory costing procedures.) a. Average cost b. FIFO c. LIFO d. Which of the above methods (if any) results in the same ending inventory valuation under both periodic and perpetual costing procedures? Explain.