I will appreciate if anyone shows me the difference between FIFO AND LIFO methods to find these answers that I already have.

The following units of an inventory item were available for sale during the year:

Beginning inventory	10 units at $55
First purchase	25 units at $60
Second purchase	30 units at $65
Third purchase	15 units at $70

The firm uses the periodic inventory system. During the year, 60 units of the item were sold. The value of ending inventory using LIFO is

a.$1,375

b.$1,350

c.$1,250

d.$1,150 ANSWER

The following units of an inventory item were available for sale during the year:

Beginning inventory	10 units at $55
First purchase	25 units at $60
Second purchase	30 units at $65
Third purchase	15 units at $70

The firm uses the periodic inventory system. During the year, 60 units of the item were sold. The value of ending inventory using FIFO is

a.$1,350

b.$1,250

c.$1,150

d.$1,375 ANSWER