Suppose that Old Navy uses the periodic inventory system and had the following inventory information available: 1. 2. 1/1 3. 1/20 7/25 10/20 Beginning Inventory Purchase 4. (a) Purchase 4. (b) Purchase Units 98 490 Answer the following independent questions. 98 294 980 Unit Cost $4 $5 $7 $8 A physical count of inventory on December 31 revealed that there were 343 units on hand. Total Cost $392 2,450 686 2,352 $5,880 Assume that the company uses the FIFO method. The cost of the ending inventory at December 31 is Assume that the company uses the average-cost method. The cost of the ending inventory on December 31 is Assume that the company uses the LIFO method. The cost of the ending inventory on December 31 is 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 Would income have been greater or less? LA $ $ $ $

Suppose that Old Navy uses the periodic inventory system and had the following inventory information available: A physical count of inventory on December 31 revealed that there were 343 units on hand. Answer the following independent questions. 1. Assume that the company uses the FIFO method. The cost of the ending inventory at December 31 is 2. Assume that the company uses the average-cost method. The cost of the ending inventory on December 31 is 3. Assume that the company uses the LIFO method. The cost of the ending inventory on December 31 is 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 4. (b) Would income have been greater or less? Suppose that Old Navy uses the periodic inventory system and had the following inventory information available: A physical count of inventory on December 31 revealed that there were 343 units on hand. Answer the following independent questions. 1. Assume that the company uses the FIFO method. The cost of the ending inventory at December 31 is 2. Assume that the company uses the average-cost method. The cost of the ending inventory on December 31 is 3. Assume that the company uses the LIFO method. The cost of the ending inventory on December 31 is 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 4. (b) Would income have been greater or less