Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system Assume its accounting records provided the following information at the end of the annual accounting period, December 31 Transactions Units Unit Cost Beginning inventory, January 1 180 $ 28 Transactions during the year a Purchase on account, March 2 290 30 b Cash sale, April 1 ($44 each) (330) c Purchase on account, June 30 230 34 d Cash sale, August 1 ($44 each) (55) Required 1 a Calculate the Cost of Goods Sold and Ending Inventory for Scrappers Supplies assuming it applies the LIFO cost method perpetually at the time of each sale TIP The sale of 330 units on April 1 is assumed, under LIFO, to consist of the 290 units purchased March 2 and 40 units from beginning inventory 1 b Does the use of a perpetual inventory system result in a higher or lower Cost of Goods Sold than the periodic inventory system when costs are rising

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Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each

Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.

Transactions	Units	Unit Cost
Beginning inventory, January 1	180	$ 28
Transactions during the year:
a. Purchase on account, March 2	290	30
b. Cash sale, April 1 ($44 each)	(330)
c. Purchase on account, June 30	230	34
d. Cash sale, August 1 ($44 each)	(55)

Required:

1-a. Calculate the Cost of Goods Sold and Ending Inventory for Scrappers Supplies assuming it applies the LIFO cost method perpetually at the time of each sale. TIP: The sale of 330 units on April 1 is assumed, under LIFO, to consist of the 290 units purchased March 2 and 40 units from beginning inventory.

1-b. Does the use of a perpetual inventory system result in a higher or lower Cost of Goods Sold than the periodic inventory system when costs are rising?