Questions 14 through 19 are based on the following information.

Peoples Printer Co. sells printers and uses a periodic inventory approach. The PX4015 Brand is one of the printers it sells and this brand had the following beginning inventory, purchase, and sales history for the current year:

Number ofCost perTotal

PrintersPrinterCost

January 1 inventory8$144.00$1,152.00

July 16 purchases12$152.00$1,824.00

December 8 purchases5$160.00$800.00

Available for sale25$3,776.00

July 18 sales19

December 31 inventory6

The selling price of the printer was $230.

14. Determine cost of goods sold for the year ended December 31 if the LIFO cost flow assumption is used.

15. Determine ending inventory as of December 31 if the LIFO cost flow assumption is used.

16. Determine gross profit for the year ended December 31 if the LIFO cost flow assumption is used.

17. Determine cost of goods sold for the year ended December 31 if the FIFO cost flow assumption is used.

18. Determine ending inventory as of December 31 if the FIFO cost flow assumption is used.

19. Determine gross profit for the year ended December 31 if the FIFO cost flow assumption is used.

Questions 20 through 25 are based on the following information.

Peoples Printer Co. sells printers and uses a perpetual inventory approach. The PX4015 Brand is one of the printers it sells and this brand had the following beginning inventory, purchase, and sales history for the current year:

Number ofCost perTotal

PrintersPrinterCost

January 1 inventory8$144.00$1,152.00

July 16 purchases12$152.00$1,824.00

December 8 purchases5$160.00$800.00

Available for sale 25$3,776.00

July 18 sales 19

December 31 inventory6

The selling price of the printer was $230.

20. Determine cost of goods sold for the year ended December 31 if the LIFO cost flow assumption is used.

21. Determine ending inventory as of December 31 if the LIFO cost flow assumption is used.

22. Determine gross profit for the year ended December 31 if the LIFO cost flow assumption is used.

23. Determine cost of goods sold for the year ended December 31 if the FIFO cost flow assumption is used.

24. Determine ending inventory as of December 31 if the FIFO cost flow assumption is used.

25. Determine gross profit for the year ended December 31 if the FIFO cost flow assumption is used.

26. For a company that uses U.S. GAAP, in a period of falling prices, the inventory cost flow assumption that results in the lowest gross profit is

a. FIFO.

b. LIFO.

c. Weighted average.

d. Specific identification.