The table below shows the beginning inventory, purchase and sale data for T-shirts over the month of April for Gpsum Company. Gpsum maintains a perpetual inventory system and closes its accounts at the end of the year.

Date Description Units Cost

April 3	Opening balance	24	$10
11	Purchases	26	$12
14	Sale	36
21	Purchases	18	$15
25	Sale	20

Required:

Calculate the cost of merchandise sold and ending inventory under the following inventory valuation method. Show all workings!

Ending Cost of Goods Sold Inventory

1. FIFO (First-In, First-Out) ? ? (3 marks)

2. LIFO (Last-In, First-Out) ? ? (3 marks)

3. In a deflationary period, which of the above method gives the highest profit and why.

(2 marks)

A physical count of the T-shirt at April 30 indicated 10 units. Journalize the inventory losses based on LIFO method above. Explanation is not required.