Novak Companys record of transactions for the month of April was as follows.

Purchases							Sales
April 1	(balance on hand)		1,740	@	$6.00		April 3		1,450	@	$10.00
4			4,350	@	6.08		9		4,060	@	10.00
8			2,320	@	6.40		11		1,740	@	11.00
13			3,480	@	6.50		23		3,480	@	11.00
21			2,030	@	6.60		27		2,610	@	12.00
29			1,450	@	6.79				13,340
			15,370

Assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) FIFO and (2) LIFO. (Round answer to 0 decimal places, e.g. 2,760.)

		(1) FIFO		(2) LIFO
Inventory		$		$

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Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO. (Round answer to 0 decimal places, e.g. 2,760.)

Cost of goods sold

$

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In an inflationary period, which inventory methodFIFO, LIFO, average-costwill show the highest net income?

Average-costFIFOLIFO inventory method will show the highest net income.

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