Question

Cost flow assumptions for FIFO and LIFO using a periodic system.

Question 1. Sales during the year were 700 units. Beginning inventory was 400 units at a cost of $10.00 per unit. Purchase 1 was 500 units at $12.00 per unit. Purchase 2 was 300 units at $14.00 per unit.


Required: Calculate cost of goods sold and ending inventory under the following cost flow assumptions(using a periodic inventory system):
a. FIFO
b. LIFO