Part A: Cost of Goods Sold Using FIFO and LIFO Methods (20 Points)

Fischer, Inc. had the following inventory in fiscal 2013. Compute the company's cost of goods sold for fiscal 2013 assuming the company used a) FIFO and b) LIFO methods of accounting for inventory: PLEASE SHOW YOUR WORKINGS IN EXCEL. ONCE YOU COMPLETED YOUR WORK IN EXCEL TAKE A SCREENSHOT AND PASTE IT IN THIS DOCUMENT.

Beginning Inventory, January 1, 2013: 130 units @ $10.00

Purchase 200 units @ $12.00

Purchase 50 units @ $9.00

Purchase 110 units @ $10.50

Ending Inventory, December 31, 2013: 120 units

PASTE SCREENSHOT HERE

Part B: Change of inventory method: (10 points)

Please put in the empty cells whether the statement is True or False?

LIFO inventory costing yields more accurate reporting of the inventory balance on the balance sheet.

Companies using LIFO are required to disclose the amount at which inventory would have been reported had it used FIFO. Similarly, companies using FIFO are required to disclose what their inventory would have been if the company had used LIFO.

In general, in a period of falling prices, LIFO produces higher gross profits than FIFO.

Increasing inventory turnover rate will improve profitability.