FIFO versus LIFO (Learning Objective 2) 10–15 min.

Assume that North Country Bike World bought and sold a line of mountain bikes during August as follows:

North Country Bike World 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?AppendixLO1

Transcribed Image Text:

Date Aug 1 Item Quantity Unit Cost Balance 17 $267 5 Sale 11 228 12 Purchase 16 $271 21 Sale 10 30 Sale 7