Toys Galore store bought and sold a line of dolls during December as follows:

Inventory Information:

Beginning inventory 14 units@ 11

Sale 8 units

Purchase 15 units@ 13

Sale 14

Requirement 1. Calculate the cost of ending inventory under FIFO. Determine the cost of ending inventory under FIFO by completing a perpetual inventory record. Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)

Dolls
	Purchases	Cost of Sales	Inventory on Hand
Date	QTY	Unit Cost	Tot. Cost	QTY	Unit Cost	Tot. Cost	QTY	Unit Cost	Tot. Cost
Beginning
Sale
Purchase
Sale
Totals

Requirement 2. Calculate the cost of ending inventory under LIFO.

Determine the cost of ending inventory under LIFO by completing a perpetual inventory record. Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)

Dolls
	Purchases	Cost of Sales	Inventory on Hand
Date	QTY	Unit Cost	Tot. Cost	QTY	Unit Cost	Tot. Cost	QTY	Unit Cost	Tot. Cost
Beginning
Sale
Purchase
Sale
Totals

Requirement 3. Which method results in a higher cost of ending inventory? Select correct option:

a. LIFO

b. FIFO

c. Neither, they are equal