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During 2018, Noval Company sells 252 units of inventory for $100 each. The company has the following inventory purchase transactions for 2018 Date Jan. 1 Beginning inventory Apr. 7 Purchase Oct. 9 Purchase Transaction Number of Units Unit Cost Total Cost $74$4,514 13,756 6,318 61 181 81 76 78 323 $ 24,588 value 1.00 points Required 1. Calculate ending inventory, cost of goods sold, and gross profit for 2018, assuming the company uses LIFO with a periodic inventory system LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory of Unit Total Cost of Units Cost Number Unit Total Cost of Units Number Unit Cost Total Cost Units Cost Beginning Invento Purchases Apr 07 Oct 09 Total Sales revenue Gross profit2. To comply with IFRS, the company decides to instead account for inventory using FIFO. Calculate ending inventory, cost of goods sold, and gross profit for 2018 Cost of Goods Sold Ending Inventory FIFO Cost of Goods Available for Sale rofUnit Total Cost of Unit Total Cost of Units st Number Number Unit Cost Total Cost Units Cost Beginning Invento Purchases Apr 07 Oct 09 Total Sales revenue Gross profit3. What would be the effects in the companys income statement and balance sheet of using FIFO instead of LIFO to account for inventory FIFO will result in ncome FIFO will result in assets

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Part:1 Cost of goods available for sale o.of units Unit cost Total cost No.of units Unit costTotal cost No.of unitsUnit cost Total cost LIFO Cost of goods sold Ending inventory Beginning inventory Purchases 61 74 4514 61 74 4514 pr-07 Oct-09 Total 181 76 78 76 78 10 13756 6318 24588 12996 6318 19314 76 760 81 81 252 323 71 5274 Sales Revenue (252*100 25200 Gross Profit (25200-193145886 Part :2 FIFO Cost of goods available for sale Cost of goods sold o.of units Unit cost Total cost No.of units Unit costTotal cost No.of unitsUnit cost Total cost 74 Ending inventory Beginning inventory Purchases 61 74 4514 61 4514 pr-07 Oct-09 Total 181 81 181 76 78 13756 6318 24588 76 78 13756 780 19050 0 5538 78 71 Sales Revenue (252*100 25200 Gross Profit (25200-19050 6150 Part :3 FIFO WILL RESULT IN INCREASED INCOME FIFO WILL RESULT IN INCREASED ASSETS(Ending inventory)

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