Unit 3 Activity 1 Assignment - Periodic Inventory Systems Part A: Dene Company uses a periodic inventory system and reports the following inventory transactions for the month of June 2020. A physical inventory count showed 180 units were on hand on June 30. Units Unit Cost Total Cost June 1 Inventory 150 S3 S 750 12 Purchases 230 6 1,380 16 Purchases 495 8 3.960 23 Purchases 175 9 1.575 Instructions: 1. Calculate the cost of the ending inventory and the cost of goods sold under: a FIFO, and b. Average cost 2. From 1b) above, explain why the average per unit cost is not $7. 3. Which cost flow assumption gives the higher ending inventory? Why? 4. Which cost flow assumption results in the higher cost of goods sold? Why? Part B: 1. Considering the data in Part A) if you were to calculate the ending inventory and cost of goods sold under the LIFO cost flow assumption, would you expect the results to be higher or lower than the results under (1) FIFO and (2) average cost? Explain 2. Using the data from Part A), calculate the cost of the ending inventory and the cost of goods sold using the LIFO cost flow assumption. Were your predictions in Part B) 1) correct or incorrect? Why