Part II Problem Solving All problems should be done on a worksheet all you do is just merely perform the operation without any basis, you will not be awarded any points. Show your work show. Mark Show your work A safe bet is always to layout the problem the way the book does, or the way it was done in class. Problem 1 Grother Company uses the periodic inventory method and had the following inventory information available: Units Unit Cost Total Cost 1/1 Beginning Inventory 100 $ 400 1/20 Purchase 500 2.500 7/25 Purchase 100 10/20 Purchase 300 2.400 $6.000 55 700 1.000 A physical count of inventory on December 31 revealed that there were 350 units on hand. Instructions Answer the following independent questions and show computations supporting your answers. 1. Assume that the company uses the FIFO method. Compute the value of the ending inventory at December and the cost of goods sold 2. Assume that the company uses the average cost method. Compute the value of the ending inventory on December 31 and the cost of goods sold 3. Assume that the company uses the LIFO method. Compute the value of the ending inventory on December 31 and the cost of goods sold. Page 7 of 11