Grother Company Uses the Periodic Inventory Method and Had the Following

question 172

Short Answer

Grother 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 350 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:

Positive Psychologists

Specialists in the field of psychology who focus on studying and fostering the strengths, virtues, and happiness that contribute to human flourishing.

Gestalt Theorists

Psychologists who emphasize that the whole of anything is greater than its parts, and focus on patterns and human perceptual capabilities.

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Individuals who focus on human values and concerns, advocating for human welfare and emphasizing the importance of human dignity, capabilities, and potential.

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Psychologists who focus on observable behaviors and the ways in which learning influences behavior, often emphasizing the role of environment over genetics.