Textbook Problem

( Appendix 6B) Inventory Costing Methods: Periodic System

Harrington Company had the following data for inventory during a recent year:

Assume that Harrington uses a periodic inventory accounting system.

Required:

1. Using the FIFO, LIFO, and average cost methods, compute the ending inventory and cost of goods sold. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)

2. CONCEPTUAL CONNECTION Which method will produce the most realistic amount for income? For inventory?

3. CONCEPTUAL CONNECTION Which method will produce the lowest amount paid for taxes?