Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

تمرين 92

(Supplement 7A) Analyzing the Effects of the LIFO Inventory Method in a Perpetual Inventory System
Using the information in CP7-1, calculate the Cost of Goods Sold and Ending Inventory for Scrappers Supplies assuming it applies the LIFO cost method perpetually at the time of each sale. Compare these amounts to the periodic LIFO calculations in requirement 1 a of CP7-1. Does the use of a perpetual inventory system result in a higher or lower Cost of Goods Sold when costs are rising
TIP: In CP7-5, the sale of 350 units on April 1 is assumed, under LIFO, to consist of the 300 units purchased March 2 and 50 units from beginning inventory.