Trends by Tiffany sells high-end leather purses. During 2015, the company has the following inventory transactions.

Because trends in purses change frequently, Trends by Tiffany estimates that the remaining nine purses have a current replacement cost at December 31 of only $350 each.

Required:
1. Using FIFO, calculate ending inventory and cost of goods sold.
2. Using LIFO, calculate ending inventory and cost of goods sold.
3. Determine the amount of ending inventory to report using lower-of-cost-or-market. Record any necessary adjustment under
(a) FIFO
(b) LIFO.

Transcribed Image Text:

Date Transaction Units 20 30 Cost $500 520 550 Total Cost Apr. 9 Oct. 4 Beginning inventory Purchase Purchase $10,000 15,600 6,050 S31,650 Jan. 1-Dec. 31 52