Dhaka Electronics has the following inventory data:

Dhaka Electronics

Date Explanation Units Unit Cost Total Cost Balance in Units

2020-01-01 Beginning Inventory 150 9 1350 100

2020-04-15 Purchases 200 10 2000 350

2020-08-24 Purchases 330 11 3630 680

2020-09-10 Sale 550 130

2020-11-27 Purchases 400 12 4800 530

2020-11-30 Sale 250 280

11780

Instructions

a. Under a perpetual inventory system, determine the cost of inventory on hand at

March 31 and the cost of goods sold for March under (a) FIFO, (b) LIFO, and (c)

average-cost.

b. Critically evaluate the impact of using each valuation methods on net income and tax

expense of the company.