Assume Bello's Bikes, Inc., bought and sold a line of mountain bikes during October as follows:

Bello’s Bikes, Inc., uses the perpetual inventory system.

Requirements

1. Compute the cost of ending inventory under FIFO.

2. Compute the cost of ending inventory under LIFO.

3. Which method results in higher cost of ending inventory?

Transcribed Image Text:

Date Item Oct 1 Balance 5 Sale 12 Purchase 21 Sale 30 Sale Unit Cost $270 Quantity 13 11 18 $273