FIFO, LIFO, and Average Cost Calculations (Perpetual Inventory Method)

The July 2009 inventory records of Mario’s Bookstore showed the following:

1. Using the perpetual inventory method, compute the ending inventory and cost of goods sold balances with

(a) FIFO,

(b) LIFO, and

(c) average cost. Compute unit costs to the nearest cent.
2. Which of the three alternatives is best? Why?

Transcribed Image Text:

Beginning inventory Sold Purchased July 1 53722 13 17 Sold... Purchased Sold 28,000 at $2.00= $56,000 4,000 6,000 at $2.25 13,500 3,000 8,000 at $2.50 20,000 5,000 $89,500