The Caldwell Company had 50 electric motors in its November | inventory. The company uses the perpetual inventory system and made the following purchases and sales of electric motors during November and December.

Nov. 12 40 electric motors 20 100 electric motors for $65 each 29 80 electric motors Dec. 4 100 electric motors for $75 each 10 50 electric motors for $80 each 16 140 electric motors The FIFO and the LIFO costs of the electric motors in the November | inventory were

$64 and $50, respectively.

Required: (1) Compute the cost of goods sold and the ending inventory for each month if the company uses the following:

(a) The FIFO cost flow assumption

(b) The LIFO cost flow assumption

(2) Which cost flow assumption provides the more realistic balance sheet amount for ending inventory? Why? Which provides the more realistic measure of income? Why?

 TYK-1