At the beginning of the current period, Viraat Industries, which uses a periodic inventory system, has 150 units of a product with a unit cost of $480. The inventory records report the following transactions: Units Unit Cost Cost Beginning Inventory 150 $480 $72,000 Purchase #1 150 $528 79,200 Purchase #2 70 $570 39,900 Purchase #3 30 $630 18,900 400 $210,000 During the current period, Viraat sells 340 units. a) Assume Viraat uses the FIFO method. Compute the cost of goods sold for the current period and the ending inventory balance for this product. b) Assume Viraat uses the LIFO method. Compute the cost of goods sold for the current period and the ending inventory balance for this product.
At the beginning of the current period, Viraat Industries, which uses a periodic inventory system, has 150 units of a product with a unit cost of $480. The inventory records report the following transactions:
Units Unit Cost Cost
Beginning Inventory 150 $480 $72,000
Purchase #1 150 $528 79,200
Purchase #2 70 $570 39,900
Purchase #3 30 $630 18,900
400 $210,000
During the current period, Viraat sells 340 units.
a) Assume Viraat uses the FIFO method. Compute the cost of goods sold for the current period and the ending inventory balance for this product.
b) Assume Viraat uses the LIFO method. Compute the cost of goods sold for the current period and the ending inventory balance for this product.
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