The Russell DVD business had 200 DVDs in its 1 April inventory. It uses the perpetual inventory system and made the following purchases and sales of DVDs during April and May:

The FIFO and the LIFO costs of the DVDs in the 1 April inventory were \(\$ 12\) and \(\$ 8\), respectively.

Required:
a Calculate the cost of goods sold and the ending inventory for each month if the company uses the following:
i The FIFO cost flow assumption.
ii The LIFO cost flow assumption.
b Which cost flow assumption provides the more realistic balance sheet amount for ending inventory? Why? Which provides the more realistic measure of income? Why?

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Apr. 9 17 24 26 May 8 15 22 Purchases Sales Purchases Sales Sales Purchases Sales 20 30 DVDs 50 DVDs for $16 each 20 DVDs 30 DVDs 70 DVDs for $17 each 50 DVDs DVDs for $5 each