Question $4$ Inventories

Humphrey$$s Ltd uses the periodic inventory method and had the following inventory information available:

$1-$Jan Beginning Inventory $-40$ units $-$ units cost $$4\mathrm{.}10-$ Total Cost $$164$

$20-$Jan Purchase $-$ Units $50-$ Units Cost $$4\mathrm{.}30-$ Total Cost $$215\mathrm{.}00$

$25-$Jul Purchase $-$ Units $60-$ Units Cost $$4\mathrm{.}80-$ Total Cost $$288\mathrm{.}00$

$20-$Octr Purchase $-$ Units $35-$ Units Cost $$5\mathrm{.}00-$ Total Cost $$175\mathrm{.}00$

A physical count of inventory on $31$ December revealed that there were $50$ units on hand.

Required:

a$)$ 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 $31$ December is $$\_\_\_\_\_\_\_\_\_\_.$

$2.$ Assume that the company uses the average cost method. The value of the ending inventory on $31$ December is $$\_\_\_\_\_\_\_\_\_\_.$

$3.$ Assume that the company uses the LIFO method. The value of the ending inventory on $31$ December is $$\_\_\_\_\_\_\_\_\_\_.$

$4.$ Assume that the company uses the FIFO method. The value of the cost of sales at $31$ December is $$\_\_\_\_\_\_\_\_\_\_.$

b$)$ Explain the impact of applying LIFO cost flow on the reports of a retail business.