Inventory information for part 311 of monique aaron corp. discloses the following information for the month of june.
june? 1
balance
300 units @ $10
june 10
sold
200 units @ $24
11
purchased
800 units @ $12
15
sold
500 units @ $25
20
purchased
500 units @ $13
27
sold
300 units @ $27
instructions
(a)
assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) lifo and (2) fifo.
(b)
assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at lifo?
(c)
assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at fifo?
(d)
why is it stated that lifo usually produces a lower gross profit than fifo?