LoBianco Company’s record of transactions for the month of April was as follows.

 
   

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LoBianco Company's record of transactions for the month of April was as follows.

Purchases Sales

April 1 (Balance on hand) 600 @ $6.00 April 3 500 @ $10.00

April 4 1,500 @ $6.08 April 9 1,300 @ $10.00

April 8 800 @ $6.40 April 11 600 @ $11.00

April 13 1,200 @ $6.50 April 23 1,200 @ $11.00

April 21 700 @ $6.60 April 27 900@ $12.00

April 29 500 @ $6.79

5,300 4,500

(a) Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using (1) LIFO and (2) average cost.

LIFO $

Average Cost $

(b) Assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) FIFO and (2) LIFO.

FIFO $

LIFO $

(c) Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO.

Cost of goods sold $

(d) In an inflationary period, which inventory method FIFO, LIFO, average cost will show the highest net income?