Exercise 5 Financial Accounting

Financial Accounting Exercise 5-19A Students: Please fill-in areas that are shaded. FIFO versus LIFO Student Name Date: Assume that Midway Cycles bought and sold a line of mountain bikes during May as follows: The company uses the perpetual inventory system. Instructions 1. Compute the cost of ending inventory under FIFO. Show your work. 2. Compute the cost of ending inventory under LIFO. Show your work. 3. Which method results in higher cost of ending inventory? Elaborate your response. Req. 1 FIFO ending inventory = Req. 2 LIFO ending inventory = Req. 3 Office Furniture