Using the above information, fill in the chart below with the amounts that should be reported for total cost of goods sold for December and the cost of ending inventory at Dec 31 under both the FIFO and LIFO cost flow assumptions.

please refer to te explanation section

Explanation:

The question is incomplete , to calculate inventory balance under FIFO or LIFO we need inventory transactions. The Transactions were not given in the question. I will explain the FIFO and LIFO concepts and also provide an example to show how to use these concepts.

FIFO Costing Method

FIFO costing Method is an inventory costing system that is based on the assumption that stock items purchased or stock items placed in inventory first will be sold first hence the acronym FIFO which stands for first in first out. the balance of inventory at the end of the period thus shows stock most recently purchased stock items or stock items placed in inventory.

LIFO Costing

Method LIFO costing Method is an inventory costing system that is based on the assumption that stock items most recently Purchased or stock items most recently placed in inventory will be sold first, hence the acronym LIFO which stands for last in first out.

example

10 February 2019 Purchased inventory for $1000. 100 units costing $10 each.

15 February 2019 Purchased inventory for $4500. 300 units costing $15

20 February 2019 Sold 150 units of inventory.

FIFO method

150 units were sold, therefore the first 100 units out of 150 will taken from inventory purchased on the 10th of February and 50 units will take from inventory purchased on the 15th of February. The inventory Balance will 300 units minus 50 units

inventory Balance = (300 - 50) x 10 = 250 x 15 = 3750

LIFO method

150 units were sold, the entire 150 units sold will be taken from inventory purchased on 15th of February. inventory balance will 300 units minus 150 units sold plus 100 units from inventory purchased on the 10th.

inventory Balance = (30 -150) x 15 + 100 x 10 = (150 x 15) + (100 x 10) = 3250

answer; im thinking the correct answer is (7years);