Randal company has the following inventory transactions for the month of April:

Purchases: Units Cost Sales: Units

April 1 (beg. balance) 600 $6.00 April 3 500

4 1,500 $6.08 9 1,400

8 800 $6.40 11 600

13 1,200 $6.50 23 1,200

21 700 $6.60 27 900

29 500 $6.79

Instructions:

1) Assume Randal Company uses periodic inventory records. Determine the value of ending inventory using:

a) FIFO

b) LIFO

c) Average-cost

2) Assume Randa lComapny uses perpetual inventory records. Determine the value of ending inventory using:

a) FIFO

b) LIFO

3) Calculate cost of goods sold assuming the company uses periodic inventory procedures and inventory is priced using FIFO.

4) During an inflationary time period, which inventory method (FIFO, LFIO, or weighted average) will result in the highest net income? Why?