P$7-3($Algo$)$ Evaluating Four Alternative Inventory Methods Based on Income and Cash Flow LO$7-2,7-3$

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At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $$16\mathrm{.}80$ per unit:

Transactions Units Amount

Inventory, January $1690$ $ $3,105$

Purchase, January $126604,290$

Purchase, January $262201,870$

Sale $(550)$

Sale $(200)$

P$7-3$ Part $1$

Required:

$1$a$.$ Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average cost, FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January $12$ purchase.

$1$b$.$ Assuming the use of a periodic inventory system, prepare a partial income statement under each method of inventory: $($a$)$ average cost, $($b$)$ FIFO, $($c$)$ LIFO, and $($d$)$ specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January $12$ purchase.

Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average cost, FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January $12$ purchase. $($Round unit price to $2$ decimal places. Input all amounts as positive values.$)$ Assuming the use of a periodic inventory system, prepare a partial income statement under each method of inventory: $($a$)$ average cost, $($b$)$ FIFO, $($c$)$ LIFO, and $($d$)$ specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January $12$ purchase.

DONNER COMPANY

Partial Income Statement

For the Month Ended January $31,$ Current Year

$($a$)($b$)($c$)($d$)$

Average Cost FIFO LIFO Specific Identification