Waterway Company's inventory records show the following data: Units Unit Cost Inventory, January 1 $9.20 10200 Purchases: June 18 8600 9.00 November 8 6200 6.00 A physical inventory on December 31 shows 4000 units on hand. Waterway sells the units for $13 each. The company has an effective tax rate of 20 % . Waterway uses the periodic inventory method. What is the cost of goods available for sale? $327440 $171640 O $184440 $208440 Two companies report the same cost of goods available for sale but each employs a different inventory ocosting method. If the price of goods has increased during the period, then the company using LIFO will have the highest ending inventory LIFO will have the lowest cost of goods sold. FIFO will have the highest cost of good sold. FIFO will have the highest ending inventory Days in inventory is calculated by dividing 365 days by average inventory. the inventory turnover by 365 days. average inventory by 365 days. 365 days by the inventory turnover. |Because ending inventory is too low, cost of goods sold will be too high (overstated) and since cost of goods sold (an expense) is too high, net income will be too low (understated). Atlantis Company's ending inventory is understated $4,000. The effects of this error on the current year's cost of goods sold and net income, respectively, are understated, overstated. overstated, understated. Ooverstated, overstated. understated, understated. A new average cost is computed each time a purchase is made in the average-cost method moving-average method weighted-average cost method all of these methods