UW assumptions. IFO $4,330 IFO $4,830 Average $4,546.90 Vou are provided with the following information for Gobler Inc. Gobler Inc. uses Compare specifie method of accounting for its inventory transactions March 1 larch 3 Purchased 2,500 liters at a cost of 65c per liter. March 5 Sold 2,300 liters for $1.05 per liter. March 10 Purchased 4,000 liters at a cost of 72 per liter March 20 Purchased 2,500 liters at a cost of 80e per liter. March 30 Sold 5,200 liters for $1.25 per liter 1 Beginning inventory 2,000 liters at a cost of 60 per liter. FIFO, and LIFO under periodic method use cost flow assumption to justify price increase. LO 2) Instructions (a) Prepare partial income statements through gross profit, and calculate the value of ending inventory that would be reported on the balance sheet, under each of the fol- lowing cost flow assumptions. (Round ending inventory and cost of goods sold to the nearest dollar) (1) Specific identification method assuming: (a) Gross profit $3,715 (i) The March 5 sale consisted of 1,000 liters from the March 1 beginning inven- (1) Specific identification tory and 1,300 liters from the March 3 purchase; and ning inventory and each purchase: 450 liters from March 1; 550 liters from March 3; 2,900 liters from March 10; 1,300 liters from March 20. (i) The March 30 sale consisted of the following number of units sold from begin- (2) FIFO $3.930 (3) LIFO $3,385 (2) FIFO. (3) LIFO. method to justify price increases? Which cost flow (b) How can companies use a cost flow method ould best support an argument to increase prices? 2 and answer questions using P6-7A The FIFO and LIFO e management of Danica Co. asks your help in determining the comparative Compute ending inventory. ntory cost flow methods. For 2017, the accounting prepare income statements