Comparing cost of goods sold in a perpetual system—FIFO and LIFO [15-20 min]Review the dat...

Comparing cost of goods sold in a perpetual system—FIFO and LIFO [15-20 min]

Review the data in Exercise.

Requirements

1. Compute the cost of goods sold under FIFO.

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2. Compute the cost of goods sold under LIFO.

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3. Which method results in the higher cost of goods sold?

Comparing amounts for ending inventory—perpetual inventory—FIFO and LIFO [5-10 min]

Assume that a Models and More store bought and sold a line of dolls during December as follows:

Models and More uses the perpetual inventory system.

Requirements

1. Compute the cost of ending inventory using FIFO.

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2. Compute the cost of ending inventory using LIFO.

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3. Which method results in a higher cost of ending inventory?