In: Accounting
Aircard Corporation tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period as if it uses a perpetual inventory system. The following are the transactions for the month of July. |
Units | Unit Cost | ||
July 1 | Beginning Inventory | 2,600 | $46 |
July 5 | Sold | 1,300 | |
July 13 | Purchased | 6,600 | 50 |
July 17 | Sold | 3,600 | |
July 25 | Purchased | 8,600 | 56 |
July 27 | Sold | 5,600 | |
Calculate the cost of ending inventory and cost of goods sold assuming a perpetual inventory system is used in combination with (a) FIFO and (b) LIFO. |
(a) | FIFO |
(b) | LIFO |