McQuire Company uses the periodic inventory method and had the following inventory information available.

UnitsUnit Cost Total Cost

1/1 Beginning Inventory 100 $4 $400 1/20 Purchase 400$5 $2000 7/25 Purchase 200 $7 $1400 10/20 Purchase 300$8 $ 2,400

1000 $6200

A physical count of the inventory on December 31 revealed that there were 400 units on hand.

Answer following questions and show calculations.

1. Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is $__________.(show all work)

2. Assume that the company uses the average cost method. The value of the ending inventory on December 31 is $__________. (show all work) 3. Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $__________. (show all work) 4. Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method. Would income have been greater or less?