The following information is available for Yancey Company:

Beginning inventory 600 units at $4

First purchase 900 units at $6

Second purchase 500 units at $7.20

Assume that Yancey uses a periodic inventory system and that there are 700 units left at the end of the month.

Instructions

Compute the cost of ending inventory under the (Show workings)

(a) FIFO method. (4 marks)

(b) LIFO method. (4 marks)