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Question 3: 8 marks) Alhekema Company uses the periodic inventory system to account for inventories. It reports display the following for the month of September,
Question 3: 8 marks) Alhekema Company uses the periodic inventory system to account for inventories. It reports display the following for the month of September, in which 95 units were sold. Sept. 5 Date Explanation Units Unit costs Total Cost Sept. 1 Beginning inventory 16 $50 $800 Purchases 50 42 2,100 Sept. 16 Purchases 50 39 1,950 Sept. 27 Purchases 35 37 1.295 Instructions: . a) Determine the ending inventory and the cost of goods sold using: FIFO method (1.5 marks) LIFO method (1.5 marks) Average-cost method (1.5 marks) . b) For the current year, the management of Alhekema Company asks your help in identifying which method produce higher income taxes. Justify your answer (3.5 marks: 1 mark for identification and 2.5 marks for justification)
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