Shanrock Company Uses the Periodic Inventory Method and Had the Following

question 117

Essay

Shanrock Company uses the periodic inventory method and had the following inventory information available: A physical count of inventory on December 31 revealed that there were 400 units on hand.
Instructions
Answer the following independent questions and show computations supporting your answers.
1. Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is $__________.
2. Assume that the company uses the Average-Cost method. The value of the ending inventory on December 31 is $__________.
3. Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $__________.
4. 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?

---

Definitions:

Wife's Age

The chronological age or number of years since the birth of an individual's spouse.

Emotional Problems

Difficulties in managing and expressing feelings, which often lead to psychological distress or behavioral issues.

Occupational Attainments

The achievements or progress individuals make in their careers or job positions over time.

Marital Instability

A term used to describe a marriage with a lack of cohesion, satisfaction, and security, often leading to conflicts, separations, or divorce.