INVENTORY COSTING METHODS: COMPUTATIONS AND COMPARISONS.

Neyman, Inc., has the following data for purchases:

REQUIRED:
1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold, using the FIFO, LIFO, and weighted average methods.
2. Why is the cost of goods sold lower with LIFO than with FIFO?

Transcribed Image Text:

DATE UNITS 2/24 COST PER UNIT 110 7/2 10/31 170 90 $37 33 27 Beginning inventory was 22 units at $38, and ending inventory is 10 units. Assume that Neyman uses a periodic inventory accounting system.