1(c)

Assume that beginning inventory for ABC is 2,300,000 kg. Ending inventory is 3,800,000 kg. The fruit prices and amount purchased is provided in Table 1 below. Compute the LIFO and FIFO COGS for ABC for the period. If ABC wishes to report a larger profit, should LIFO or FIFO be used?

Table 1: Fruit Prices and Amount Bought Date Price per ko ($) Kg Bought (thousands) Addition to Inventory (in thousands of $) Jan 1.2 Feb Mar 1.4 1.3 Apr 1.7 2.5 2.3 600 400 250 300 500 400 220 340 600 220 440 355 May Jun Jul Aug Sep Oct Nov Dec Total 2.4 $720 $560 $325 $510 $1,250 $920 $528 $714 $1,620 $638 $1,408 $1,065 $10,258 2.1 2.7 2.9 3.2 4,625 (8 marks)