Calculating COGS and Inventory under LIFO and FIFO Donuld Company sells many products. Sol is one of its popular items. Below is an analysis of the inventory purchases and sales of Sol for the month of September. Donuld Company uses the periodic inventory system. INSTRUCTIONS a. Using the FIFO assumption, calculate the amount charged to cost of goods sold for September. (Show computations) b. Using the LIFO assumption, calculate the amount assigned to the inventory on hand on September 30. (Show computations) c. Calculate the LIFO reserve that would be reported in the company's books on September 30 if using LIFO.

Purchases Description Sales Units Date Units Unit Cost Selling Price/Unit 100 60 $60 $78 70 $120 200 $82 9/1 9/3 9/4 9/10 9/16 9/19 9/25 9/30 Beginning inventory Purchase Sales Purchase Sales Sales Sales Purchase 80 60 50 $130 $130 $130 40 $90