Hansen Company Uses the Periodic Inventory Method and Had the Following

question 92

Short Answer

Hansen 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 380 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:

Employee Selection

The process of interviewing, assessing, and choosing the right candidates for employment to fill available positions in an organization.

Interviewing

A method used by organizations to assess potential candidates for a job, often involving a series of questions to evaluate their qualifications and compatibility with the company culture.

Incentive-Pay Program

A compensation strategy designed to reward employees based on their performance or achievement of specific goals.

Profit-Sharing Plan

A plan in which employees receive additional compensation based on the profitability of the entire business.