At the end of April, Greenland Company reports the following for the month: Instructions
a. Assuming Greenland uses a periodic inventory system, calculate the cost of ending inventory and the cost of goods sold under (1) FIFO, (2) average.
b. Which cost assumption results in the highest ending inventory? Why?
c. Which cost assumption results in the highest cost of goods sold?
d. Which cost assumption results in the highest cash flow? Why?

Question

At the end of April, Greenland Company reports the following for the month:  Instructions 
a. Assuming Greenland uses a periodic inventory system, calculate the cost of ending inventory and the cost of goods sold under (1) FIFO, (2) average.
b. Which cost assumption results in the highest ending inventory? Why?
c. Which cost assumption results in the highest cost of goods sold?
d. Which cost assumption results in the highest cash flow? Why?

Quizplus · Accepted Answer

The Answer of At the end of April, Greenland Company reports the following for the month:  Instructions 
a. Assuming Greenland uses a periodic inventory system, calculate the cost of ending inventory and the cost of goods sold under (1) FIFO, (2) average.
b. Which cost assumption results in the highest ending inventory? Why?
c. Which cost assumption results in the highest cost of goods sold?
d. Which cost assumption results in the highest cash flow? Why?

At the End of April, Greenland Company Reports the Following