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?

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Definitions:

Time Flexibility

The ability to adapt to changes in scheduling or deadlines.

Workforce

The collective group of individuals engaged in work within an organization, encompassing all employees and labor.

Part-Time Workforce

Employees who work less than full-time hours and often have variable schedules, contributing to labor flexibility and cost management.

Product Flexibility

The ability of a manufacturing system to easily adapt to changes in the production of various products in terms of type and quantity.