Inventory information for Part 311 of Monique Aaron Corp. discloses the following information for the month of June.

June 1		Balance		303 units @ $14		June 10		Sold		203 units @ $34
11		Purchased		800 units @ $17		15		Sold		503 units @ $35
20		Purchased		497 units @ $18		27		Sold		303 units @ $38

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

D) Why is it stated that LIFO usually produces a lower gross profit than FIFO?

Exercise 8-18 The board of directors of Ichiro Corporation is considering whether or not it should instruct the accounting department to shift from a first-in, first-out (FIFO) basis of pricing inventories to a last-in, first-out (LIFO) basis. The following information is available. Sales 20,800 units @ $75 Inventory, January 1 6,620 units @ 30 Purchases 6,910 units @ 33 10,300 units @ 37 7,910 units @ 45 Inventory, December 31 10,940 units @ ? Operating expenses $299,800 Prepare a condensed income statement for the year on both bases for comparative purposes.