Problem # 5 (20 points) Hogwallop Company uses the periodic inventory method and had the following inventory information available: Units Unit Cost Total Cost 1/1 Beginning Inventory 1/20 Purchase 7/25 Purchase 10/20 Purchase 100 400 200 $4 $6 $7 $8 $ 400 2,400 1,400 2,400 $6,600 1.000 A physical count of inventory on December 31 revealed that there were 400 units on hand Instructions Answer the following independent questions and show computati answers to received full credit ons supporting your 1. Assume that the company uses the FIFQ method. Compute both the a) value of the ending inventory at December 31 and the b) cost of goods sold inventory on December 31 and b) the cost of goods sold the ending inventory on December 31 b) and the cost of goods sold 2. Assume that the company uses the LIFO method. Compute both the a) value of the ending 3. Assume that the company uses the Average-Cost method. Compute both a) the value of NOTE. > Prove (prepare the proofl the amount of amount of c) allocated to cost of goods 4. Determine the difference in the amount of income that the company would have reported it n sold under each method had used the FIFO method instead of the LIFO method. Would income have been greater or less? Show all computations supporting your answer Solution to Problem #5 1) FIFO METHOD a) Calculation of Ending Inventory