Nov. 1

Beginning inventory

61$489

Purchase

1104615

Sale

(120)22

Purchase

145

4429

Sale

(150

)30

Purchase

5043

WildhorseCompany uses a perpetual inventory system. All sales and purchases are on account.

If the company changes from weighted average to FIFO and prices continue to fall, would you expect the cost of goods sold and ending inventory amounts to be higher or lower?

Q1\how can I Calculate the cost of goods sold and the ending inventory using weighted average.

Cost of goods sold$

Ending inventory$

Q2\If prices continue to fall, the FIFO cost formula will continue to yield

higher

lower

ending inventory and

higher

lower

cost of goods sold than the weighted average cost formula.

Please explain