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Comparing amounts for ending inventoryperpetual inventoryFIFO and LIFO Assume that a Models and More store bought and sold a line of dolls during December as
Comparing amounts for ending inventoryperpetual inventoryFIFO and LIFO | |||||||||||
Assume that a Models and More store bought and sold a line of dolls during December as follows: | |||||||||||
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Models and More uses the perpetual inventory system. | |||||||||||
Requirements | |||||||||||
1. Compute the cost of ending inventory and the cost of goods sold using FIFO. | |||||||||||
2. Compute the cost of ending inventory and the cost of goods sold using LIFO. | |||||||||||
3. Which method results in the higher cost of goods sold? Which method results in a higher cost of ending inventory? | |||||||||||
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