INSTRUCTIONS: Please read carefully! Failure to follow these instructions will lead to lost points! To receive full credit, the following are required: Numerical answers are correct Journal entries are formatted correctly For each question, clearly identify the final answer. If I cannot determine which value is the final answer or if the writing is illegible, the question will not receive any points.

3. (10 pts) Widget Corp. has the following inventory transactions in 2020:

Date of Inventory Purchase	Units	Cost per Unit
January 10	60	$6
June 15	50	$8
October 20	40	$10

Date of Inventory Sales	Units
February 9	40
July 15	60
December 1	10

a. (2 pts) What are the two accounting systems used to record transactions involving inventory and how do they differ?

b. (4 pts) Assume Widget Corp. uses a periodic inventory system and the LIFO cost flow assumption. Complete the following table and determine the amount Widget Corp. would report for cost of ending inventory and cost of goods sold. (Enter zero if there are no units sold/remain.)

Date of Inventory Purchase	Units	Cost per Unit	Units Sold
January 10	60	$6
June 15	50	$8
October 20	40	$10

Cost of goods sold, as of December 31, 2021

=

________

3. (4 pts) Assume Widget Corp. uses a perpetual inventory system and the LIFO cost flow assumption. Complete the following table and determine the amount Widget Corp. would report for cost of ending inventory and cost of goods sold. (Enter zero if there are no units sold/remain.)
   • pts)

Date of Inventory Purchase	Units	Cost per Unit	Units Sold
January 10	60	$6
June 15	50	$8
October 20	40	$10

Cost of goods sold, as of December 31, 2021

=

________