Check My Work

Note that this exercise uses the periodic inventory system. FIFO means that the first units purchased are assumed to be the first

to be sold. Therefore, ending inventory costs for the period are calculated by taking the number of items remaining in the physical

inventory times the most recent purchase price. If the number of items in last purchase layer is less than the number in ending

inventory, the balance of the ending inventory items must be recorded at the second most recent purchase cost. The cost of

merchandise sold for the period can be calculated by subtracting the ending inventory from the total cost of goods available for

sale.

Note that this exercise uses the periodic inventory system. LIFO means the last units purchased are assumed to be the first to be

sold. Therefore the ending inventory for the period is made up of the earliest costs from the period $($the beginning inventory$).$ If

the number of units in the ending inventory is greater than the units in the beginning inventory, the excess units will be recorded