Reference no: EM132459561

Splish Brothers Inc. had a beginning inventory on January 1 of 353 units of Product 4-18-15 at a cost of $21 per unit. During the year, the following purchases were made.

Mar. 15940 units at $24

Sept. 4823 units at $27

July 20 588 units at $25

Dec. 2 235 units at $30

2,350 units were sold. Splish Brothers Inc. uses a periodic inventory system.

Question 1: Which cost flow method results in (1) the highest inventory amount for the balance sheet, and (2) the highest cost of goods sold for the income statement?

1. FIFO
2. LIFO
3. Average-cost

Question 2: Which one, FIFO,LIFO, or Average-cost results in the highest inventory amount, $_________

1. FIFO
2. LIFO
3. Average-cost

Question 3: Which one, FIFO,LIFO, or Average-cost produces the highest cost of goods sold, $___________