PROBLEM III

The Pins Shop shows the following data related to an item of inventory.

Inventory, January 1 100 units @ $5.00

Purchases, January 9 300 units @ $5.40

Purchases, January 19 70 units @ $6.00

Ending Inventory for the period, January 31: 120 units

REQUIRED:

1. What value should be assigned to the ending inventory and cost of goods sold using FIFO, using the periodic system?

2. What value should be assigned to the ending inventory and cost of goods sold using LIFO, using the periodic system?