Using the information in CP7-1, calculate the Cost of Goods Sold and Ending Inventory for Scrappers Supplies

Question:

Using the information in CP7-1, calculate the Cost of Goods Sold and for Scrappers Supplies assuming it applies the LIFO cost method perpetually at the time of each sale. Com-pare these amounts to the periodic LIFO calculations in requirement 1 a of CP7-1. Does the use of a perpetual inventory system result in a higher or lower Cost of Goods Sold when costs are rising?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...