sheet, and (2) the highest cost of goods sold for the income statement il lor the balance Maruli March 10 March 2 March 3 ending inventory, come statements, er questions using LIFO. riateness of using its mpany requests your the FIFO or the LIFO Instructions (a) Prepare partia ending invent lowing cost flc nearest dollar (1) Specific ic P6-4A The management of Gresa Inc. is reevaluating the appropriateness present inventory cost flow method, which is average-cost. The company help in determining the results of operations for 2017 if either the FIEO method had been used. For 2017, the accounting records show these data: Inventories Purchases and Sales Beginning (7,000 units) $14.000 Total net sales (180,000 units) $747 Ending (17,000 units) Total cost of goods purchased (190,000 units) 466,000 Purchases were made quarterly as follows. Quarter Units Unit Cost Total Cost 50,000 $2.20 $110,000 2 40,000 2.35 94,000 3 40,000 100,000 60,000 Toto 2.70 162.000 190,000 $466,000 (i) The tory a (ii) The ning Marc (2) FIFO. (3) LIFO. (b) How can con method wou 2.50 P6-7A The mar effects of the F records provide rofit: 312,900 303,000 Operating expenses were $130,000, and the company's income tax rate is 40%. Instructions (a) Prepare comparative condensed income statements for 2017 under FIFO and LIFO. (Show computations of ending inventory.) (b) Answer the following questions for management. (1) Which cost flow method (FIFO or LIFO) produces the more meaningful inventory amount for the balance sheet? Why? (2) Which cost flow method (FIFO or LIFO) produces the more meaningful net income? Why? (3) Which cost flow method (FIFO or LIFO) is more likely to approximate the actua physical flow of goods? Why? (4) How much more cash will be available for management under LIFO than FIFO? Why? (5) Will gross profit under the average-cost method be higher or lower than Than LIFO? (Note: It is not necessary to quantify your answer.) Units purchase August 15; and Instructions (a) Prepare ce (Show con - (1) Which amour (2) Which ading inventory, 's sold, gross P6-5A You are provided with the following information for Koetteritz Inc. for them ended June 30, 2017. Koetteritz uses the periodic method fom