Question
Sandhill Company uses the periodic inventory method and had the following inventory information available: Units Unit Cost Total Cost 1/1 Beginning Inventory 98 $8 $784
Sandhill Company uses the periodic inventory method and had the following inventory information available:
| Units | Unit Cost | Total Cost | |||||||||
| 1/1 | Beginning Inventory | 98 | $8 | $784 | |||||||
| 1/20 | Purchase | 392 | $9 | 3,528 | |||||||
| 7/25 | Purchase | 196 | $10 | 1,960 | |||||||
| 10/20 | Purchase | 294 | $11 | 3,234 | |||||||
| 980 | $9,506 |
A physical count of inventory on December 31 revealed that there were 470 units on hand
| 1. | Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is | $enter a dollar amount rounded to 0 decimal places | |||
|---|---|---|---|---|---|
| 2. | Assume that the company uses the Average-Cost method. The value of the ending inventory on December 31 is | $enter a dollar amount rounded to 0 decimal places | |||
| 3. | Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is | $enter a dollar amount rounded to 0 decimal places | |||
| 4. (a) | Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method. | $enter a dollar amount rounded to 0 decimal places | |||
| 4. (b) | Would income have been greater or less? |
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
