Miller Corporation 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.
Requirements:
Answer the following independent questions and show calculations supporting your answers.
1.Assume that the company uses FIFO.The value of the ending inventory at December 31 is $__________.
2.Assume that the company uses average cost.The value of the ending inventory on December 31 is $__________.
3.Determine the difference in the amount of profit that the company would have reported if it had used FIFO instead of average cost.Would profit have been greater or less?

Question

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The Answer of Miller Corporation 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.
Requirements:
Answer the following independent questions and show calculations supporting your answers.
1.Assume that the company uses FIFO.The value of the ending inventory at December 31 is $__________.
2.Assume that the company uses average cost.The value of the ending inventory on December 31 is $__________.
3.Determine the difference in the amount of profit that the company would have reported if it had used FIFO instead of average cost.Would profit have been greater or less?

Miller Corporation Uses the Periodic Inventory Method and Had the Following