LoBianco Company’s record of transactions for the month of April was as follows.
Purchases Sales
April 1 (Balance on hand) 600 @ $6.00 April 3 500 @ $10.00
April 4 1,500 @ $6.08 April 9 1,300 @ $10.00
April 8 800 @ $6.40 April 11 600 @ $11.00
April 13 1,200 @ $6.50 April 23 1,200 @ $11.00
April 21 700 @ $6.60 April 27 900@ $12.00
April 29 500 @ $6.79
5,300 4,500
(a) Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using (1) LIFO and (2) average cost.
LIFO $
Average Cost $
(b) Assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) FIFO and (2) LIFO.
FIFO $
LIFO $
(c) Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO.
Cost of goods sold $
(d) In an inflationary period, which inventory method FIFO, LIFO, average cost will show the highest net income?