The following is a record of Cannondale Company’s transactions for Boston Teapots for the month of May 2015.

Instructions

(a) Assuming that perpetual inventories are not maintained and that a physical count at the end of the month shows 510 units on hand, what is the cost of the ending inventory using (1) FIFO and (2) LIFO?

(b) Assuming that perpetual records are maintained and they tie into the general ledger, calculate the ending inventory using (1) FIFO and (2) LIFO.

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May 1 Balance 400 units @ $20 12 Purchase 600 units @ $25 28 Purchase 400 units @ $30 May 10 Sale 300 units @ $38 20 Sale 590 units @ $38