ractice Brief Exercise 01

In its first month of operations, Sheridan Company made three purchases of merchandise in the following sequence: (1) 125 units at $7, (2) 450 units at $8, and (3) 125 units at $9. Assuming there are 300 units on hand, compute the cost of the ending inventory under the (a) FIFO method and (b) LIFO method. Sheridan uses a periodic inventory system.

				FIFO
(a)		Cost of the ending inventory		$

				LIFO
(b)		Cost of the ending inventory		$