Miller Corporation Uses the Periodic Inventory Method and Had the Following

Essay

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?