Study the FIFO and LIFO explanations in the chapter.

1. Compute ending FIFO inventory and cost of goods sold. Assume $90,000 sales (900 units were sold at $100/unit); beginning inventory 500 units @$50; purchases of 400 units @$50; 100 units @$65; 400 units @$80.

2. Also compute the cost of goods sold percentage of sales.

3. Compute ending LIFO inventory and cost of goods sold, using same assumptions.

4. Also compute the cost of goods sold percentage of sales.

5. Comment on the difference in outcomes.

You may use the following table for portions of this assignment:

	Assumptions		FIFO Inventory Effect
Sales (Revenue)
Cost of Sales:
Beginning inventory
Plus: Purchases
SubTotal
Less: Ending inventory
Cost of Sales
Gross Profit
Cost of Sales %
		Assumptions		LIFO Inventory Effect
Sales (Revenue)
Cost of Sales:
Beginning inventory
Plus: Purchases
Subtotal
Less: Ending inventory
Cost of Sales