LIFO was designed to protect cash flow in industries where prices increase rapidly. It has been used for both tax anc financial statement reporting since the 1930s. The higher cost of goods sold under LIFO in these circumstances resu lower reported profit than under FIFO. In the 2012 budget, President Obama has threatened to repeal LIFO. If Exxon FIFO for its inventory valuation, calculate the cost of ending inventory and cost of goods sold if ending inventory is 100 barrels of crude oil: Beginning inventory and purchases Barrel January 1 Barrels cost Total cost March 1 123 $ 94 June 1 48 $ 11,562 103 September 1 63 4,944 97 December 1 73 6,111 92 48 6,716 102 4,896 355 $ 34,229 Cost of ending inventory ? Cost of goods sold ?

\begin{tabular}{|l|r|r|l|} \hline Begining Inventory and purchases & Barrels & Barrel cost & Total cost \\ \hline January1 & 123 & 94$11562 \\ \hline March 1 & 48 & 101 & $4848 \\ \hline June 1 & 63 & 97 & $6111 \\ \hline September 1 & 73 & 92 & $6716 \\ \hline December 1 & 48 & 102 & $4896 \\ \hline & 355 & $4229 \\ \hline \end{tabular}