Part III: FIFO and LIFO

The Brattle Corporation began operations on January 1. Information related to the company's purchases of inventory and sales of products during the year are presented below.

January 1	Purchase	220 units @ $12 per unit
April 1	Sold	120 units @ $25 per unit
July 1	Purchase	100 units @ $15 per unit
September	Sold	130 units @ $25 per unit

Required:

(a) Calculate the FIFO cost of goods sold and ending inventory. Use the perpetual method we illustrated in class.

(b) Calculate the LIFO cost of goods sold and ending inventory. Use the perpetual method we illustrated in class.

(c). What explains the difference (if any) between the two methods?