E8-10B (L03) (FIFO and LIFOPeriodic and Perpetual) Inventory information for Part 311 of Bonds Corp. discloses the following information for the month of June

Instructions

(a) Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO.

(b) Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO?

(c) Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO?

(d) Why is it stated that FIFO usually produces a higher gross profit than LIFO?

June 1 Balance450 units 11 Purchased ,200 units $2 20 Purchased 750 units @ $3 S1 June 10 Sold 300 units@ S2.40 15 Sold 750 units @ $2.50 27 Sold 450 units$2.70