Assume that Western Sporting Goods bought and sold a line of mountain bikes during May as follows:

Western Sporting Goods uses the perpetual inventory system.

Requirements
1. Compute the cost of ending inventory under FIFO.
2. Compute the cost of ending inventory under LIFO.
3. Which method results in higher cost of endinginventory?

Transcribed Image Text:

Date May Balance Item Quantity Unit Cost $250 5 Sale 12 Purchase 21 Sale 30 Sale 17 $240