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Determine the difference in the amount of income

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Morton Company uses the periodic inventory method and had the following inventory information available:

                                      Units          Unit Cost            Total Cost

1/1 Beginning inventory      100              $4                    $400

1/20 Purchase                   400               $5                   2,000

7/25 Purchase                     200                  $7                    1,400

10/20 Purchase                      300              $8                      2,400

                                      1,000                                           $6,200

Question 1: A physical count of inventory on December 31 revealed that there were 350 units on hand. 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?

Reference no: EM132648190

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