The Russell Video Company had 200 videos in its April | inventory. It uses the perpetual inventory system and made the following purchases and sales of videos during April and May.

PROTA eo DOAK NAS OS esse tersena assets cd saesecasiesapasces rest rascovar cstdsoasse sj exsnosensazounexences 20 videos for $15 each Vea SANGS sacssy sec sncs pevsnssvosdie sods scsdisessasdodsvatavsviastsdestetsstesvanessis tape dap vapssasvas 30 videos LA MMIEATCLTAS OS coeyoiee ch tostassorese ote duen atvasitapeodatacadesnut viaviaviaussuasartsseunasaasaane 50 videos for $16 each IKope SE) ee re opera eee PEAT PR TEE CTECSC A TEER ORY eth, CEPT EAE) 20 videos WA yaa Gem MS BNCSI ost annirvascssseeaay icooptenae tee v Zana rcaansaipis oeboads bis ceaatantaraps,oNCeenbaa 30 videos MS MMR ESLIRNCEIAS GS museca tecy ous vezaedec cavedee svesecssdes reat cates is tVvaceni sodigenucavanasenas set 60 videos for $17 each PD PUM MEA Sore ree ee tperaer aT ionate as svt sGrdoacos sites vapusais isstpssdays Uivesasexisuctee ives ns 50 videos The FIFO and the LIFO costs of the videos in the April | inventory were $12 and $8, 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