Assume The Bike Hub, Inc., bought and sold a line of comfort bikes during July as follows:

The Bike Hub, Inc., 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 a higher cost of ending inventory?

Transcribed Image Text:

Date Jul 1 Balance 5 Sale 12 Purchase 21 Item Unit Cost Quantity $238 8 6 13 $234 Sale 30 Sale