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present inventory cost flow method, which is average-cost. The company reques hel P6-4A The management of Gresa Inc. is reevaluating the appropriateness of usin ts y our Instructie (a) Prepa ending lowin neares (1) Sp method had been used. For 2017, the accounting records show these data: Purchases and Sales p in determining the results of operations for 2017 if either the FIFO or the LIF Inventories Beginning (7,000 units) Ending (17,000 units) Total net sales (180,000 units) Total cost of goods purchased $747,000 466,000 $14,000 (190,000 units) Purchases were made quarterly as follows. Quarter UnitsUnit Cost Total Cost $110,000 94,000 100,000 162,000 $466,000 50,000 40,000 40,000 60,000 190,000 2.35 2.50 (2) FI (3) LIF (b) How ca Operating expenses were $130,000, and the company's income tax rate is 40%. Instructions (a) Prepare comparative condensed income statements for 2017 under FIFO and LIFO P6-7A The effects of t records pro Show computations of ending inventory.) (b)Answer the following questions for management. (1) Which cost flow method (FIFO or LIFO) produces the more meaningful inventor (2) Which cost flow method (FIFO or LIFO) produces the more meaningful net (3) Which cost flow method (FIFO or LIFO) is more likely to approximate t amount for the balance sheet? Why? income? Why? Units purcha August 15; am Instructions (a) Prepare c (Show cor the actual physical flow of goods? Why? How much more cash will be available for management under LIFO than FIFO? Why? (5) Will gross profit under the average-cost method be higher or lower than Than LIFO? (Note: It is not necessary to quantify your answer.) amoun

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