Exercise 4

FIFO and LIFO inventory methods.

During June, the following changes in inventory item 27 took place:

June 1Balance1,400 units @ OMR 24

14Purchased 800 units @ OMR 36

24Purchased700 units @ OMR 30

8Sold400 units @ OMR 50

10Sold1,000 units @ OMR 40

29Sold500 units @ OMR 44

Periodic Inventory System are maintained.

What is the cost of the ending inventory, cost of goods sold and profit for Exercise No.4 (above) under the following methods? (Show calculations.) (a)FIFO (b)LIFO