Garrett Company has the following transactions during the months of April and May:   Date Transaction Units Cost/Unit   April 1 Balance 300         17 Purchase 200 $5.10       25 Sale 150         28 Purchase 100  5.80 May 5 Purchase 250  5.10       18 Sale 300         22 Sale 50     The cost of the inventory on April 1 is $5, $4, and $2 per unit, respectively, under the FIFO, average, and LIFO cost flow assumptions. Required: 1. Compute the inventories at the end of each month and the cost of goods sold for each month for the following alternatives: FIFO periodic   Cost of Goods Sold Ending Inventory April  $ ____________  $ ____________ May  $ ____________  $ ____________ FIFO perpetual   Cost of Goods Sold Ending Inventory April  $ ____________  $ ____________ May  $ ____________  $ ____________ LIFO periodic   Cost of Goods Sold Ending Inventory April  $ ____________  $ ____________ May  $ ____________  $ ____________ LIFO perpetual (Round your intermediate calculations to the nearest cent.)   Cost of Goods Sold Ending Inventory April  $ ____________  $ ____________ May  $ ____________  $ ____________ Weighted average (Round unit costs to 4 decimal places and final answers to the nearest dollar.)   Cost of Goods Sold Ending Inventory April  $ ____________  $ ____________ May  $ ____________  $ ____________ Moving average (Round unit costs to 2 decimal places and final answers to nearest dollar.)   Cost of Goods Sold Ending Inventory April  $ ____________ $ ____________ May  $ ____________  $ ____________ 2. Reconcile the difference between the LIFO periodic and the LIFO perpetual results. If an amount is zero, enter "0". April Cost of Goods Sold Ending Inventory Difference  $ ____________  $ ____________ May Cost of Goods Sold Ending Inventory Difference  $ ____________  $ ____________   3. If Garrett uses IFRS, which of the previous alternatives would be acceptable, and why? If Garrett Company uses IFRS, it may report its inventory under  . It may not use   under IFRS because it is not consistent with any presumed physical flow of inventory. Also,   is not allowed for tax purposes in most other countries, so there is no tax incentive for a company to use  . Note that companies that use IFRS and have rising inventory costs will report a higher income because they include holding gains in income.

Garrett Company has the following transactions during the months of April and May:

The cost of the inventory on April 1 is $5, $4, and $2 per unit, respectively, under the FIFO, average, and LIFO cost flow assumptions.

Required:

1. Compute the inventories at the end of each month and the cost of goods sold for each month for the following alternatives:

1. FIFO periodic
   

   	Cost of Goods Sold	Ending Inventory
   April	$ ____________	$ ____________
   May	$ ____________	$ ____________

2. FIFO perpetual
   

   	Cost of Goods Sold	Ending Inventory
   April	$ ____________	$ ____________
   May	$ ____________	$ ____________

3. LIFO periodic
   

   	Cost of Goods Sold	Ending Inventory
   April	$ ____________	$ ____________
   May	$ ____________	$ ____________

4. LIFO perpetual (Round your intermediate calculations to the nearest cent.)
   

   	Cost of Goods Sold	Ending Inventory
   April	$ ____________	$ ____________
   May	$ ____________	$ ____________

5. Weighted average (Round unit costs to 4 decimal places and final answers to the nearest dollar.)
   

   	Cost of Goods Sold	Ending Inventory
   April	$ ____________	$ ____________
   May	$ ____________	$ ____________

6. Moving average (Round unit costs to 2 decimal places and final answers to nearest dollar.)
   

   	Cost of Goods Sold	Ending Inventory
   April	$ ____________	$ ____________
   May	$ ____________	$ ____________

2. Reconcile the difference between the LIFO periodic and the LIFO perpetual results. If an amount is zero, enter "0".

3. If Garrett uses IFRS, which of the previous alternatives would be acceptable, and why?

If Garrett Company uses IFRS, it may report its inventory under  . It may not use   under IFRS because it is not consistent with any presumed physical flow of inventory. Also,   is not allowed for tax purposes in most other countries, so there is no tax incentive for a company to use  . Note that companies that use IFRS and have rising inventory costs will report a higher income because they include holding gains in income.