Which inventory cost flow method (FIFO, LIFO) gives the same ending inventory value under both…

Information about Linda"s Boards is presented in E6-4. Additional data regarding Linda"s sales of Xpert snowboards are provided below. Assume that Linda"s uses a perpetual inventory system.

Date

Units

Unit Price

Total Revenue

Sept. 5

Sale

12

$199

$ 2,388

Sept. 16

Sale

50

199

9,950

Sept. 29

Sale

59

209

12,331

Totals

121

$24,669

Instructions

(a) Compute ending inventory at September 30 using FIFO, LIFO, and moving-average cost.

(b) Compare ending inventory using a perpetual inventory system to ending inventory using a periodic inventory system .

(c) Which inventory cost flow method (FIFO, LIFO) gives the same ending inventory value under both periodic and perpetual? Which method gives different ending inventory values?

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