PROBLEM 4 Grother Company uses the periodic inventory method and had the following inventory information available: Units 100 500 100 300 1,000 Unit Cost $4 $5 $7 $8 Total Cost $ 400 2,500 Beginning Inventory 1/20 Purchase 7/25 Purchase 10/20 Purchase 700 2,400 $6,000 A physical count of inventory on December 31 revealed that there were 325 units on hand Instructions Answer the following independent questions and show computations supporting your answers. 1. Assume that the company uses the FIFO method. The value of the ending inventory at 2. Assume that the company uses the average cost method. The value of the ending inventory 3. Assume that the company uses the LIFO method. The value of the ending inventory on 4. Determine the difference in the amount of income that the company would have reported if it December 31 is $ on December 31 is $ December 31 is $ had used the FIFO method instead of the LIFO method. Would income have been greater or less