Question

1. A business that uses the perpetual inventory method has the following financial data regarding its merchandise inventory for January:

Beginning inventory 20 units at $5.00 each

January 1: Purchase 50 units at $5.50 each

January 5: Purchase 60 units at $6.00 each

Ending inventory 35 units

All January sales occurred after January 5.

1. Determine COST OF GOODS SOLD for January under FIFO.

2. Determine COST OF GOODS SOLD for January under LIFO.