Lloyd Co. is a specialty retailer that operates in several locations in western North Carolina. Lloyd sells bicycles and related equipment and supplies. Data related to purchases and sales of one of its top selling bicycle models for the years 2018 and 2019 are shown below:

Date	Description	Units	Cost Per Unit
01/01/18	Inventory	23	$349
01/26/18	Purchase	18	$355
03/09/18	Purchase	39	$372
05/14/18	Purchase	33	$387
07/02/18	Purchase	48	$403
2018	Sales	109
01/22/19	Purchase	21	$412
03/15/19	Purchase	32	$431
05/19/19	Purchase	31	$436
07/01/19	Purchase	38	$457
2019	Sales	128

Lloyd uses a periodic inventory system to account for its inventory transactions. The company prepares financial statements just once a year, at its December 31 year-end. None of the companys inventory was stolen or damaged during these two years.

Instructions

Address the following matters related to Lloyd Co.s accounting for, and reporting of, its inventory activities during 2018 and 2019:

1. Compute the companys inventory at December 31, 2018 and its cost of goods sold for 2018 under each of the following cost flow methods:

FIFO method

LIFO method

Average cost method (round the average cost per unit to the nearest cent)

2. Compute the companys inventory at December 31, 2019 and its cost of goods sold for 2019 under each of the following cost flow methods:

FIFO method

LIFO method

Average cost method (round the average cost per unit to the nearest cent)

3. Assume Lloyd uses a perpetual system and the FIFO method for day-to-day bookkeeping purposes, and the company converts its accounts to the LIFO method (periodic system) for financial reporting. Give the adjusting entry Lloyd must make at December 31, 2018 to convert its accounts to LIFO. Ignore income taxes.

4. As in (c), assume Lloyd keeps its accounts on a FIFO basis and converts them at year-end to the LIFO method. Give the adjusting entry needed at December 31, 2019 to convert the companys accounts to LIFO. Ignore income taxes. (Note Lloyd follows the practice of making reversing entries to reverse the effects of certain prior-year adjusting entries. Proceed as if Lloyd recorded an entry on January 1, 2019 to reverse the effects of the December 31, 2018 LIFO conversion entry. You do not need to make this reversing entry; simply note that it has been made.)