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

				Units		Unit Cost			Total Cost
1/1		Beginning Inventory		105		$3			$315
1/20		Purchase		495		$4			1,980
7/25		Purchase		95		$6			570
10/20		Purchase		325		$6			1,950
				1,020					$4,815

A physical count of inventory on December 31 revealed that there were 385 units on hand. Answer the following independent questions. (Round average cost per unit to 2 decimal places, e.g. 5.25 and final answers to 0 decimal places, e.g. 2,520.)

1.

Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is

$enter the value of the ending inventory in dollars

2.

Assume that the company uses the average-cost method. The value of the ending inventory on December 31 is

$enter the value of the ending inventory in dollars

3.

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

$enter the value of the ending inventory in dollars

4. (a)

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.

$enter the amount of difference

4. (b)

Would income have been greater or less?Novak Company uses the periodic inventory method and had the following inventory information available:

				Units		Unit Cost			Total Cost
1/1		Beginning Inventory		105		$3			$315
1/20		Purchase		495		$4			1,980
7/25		Purchase		95		$6			570
10/20		Purchase		325		$6			1,950
				1,020					$4,815

A physical count of inventory on December 31 revealed that there were 385 units on hand. Answer the following independent questions. (Round average cost per unit to 2 decimal places, e.g. 5.25 and final answers to 0 decimal places, e.g. 2,520.)

1.		Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is		$enter the value of the ending inventory in dollars
2.		Assume that the company uses the average-cost method. The value of the ending inventory on December 31 is		$enter the value of the ending inventory in dollars
3.		Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is		$enter the value of the ending inventory in dollars
4. (a)		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.		$enter the amount of difference
4. (b)		Would income have been greater or less?