Chapter 13, Problem 13.3BE

To determine

First-in First-Out method (FIFO)

In First-in-First-Out method, the cost of initial purchased items is sold first. The ending inventory values are those items that include recent purchased items.

In Last-in-First-Out method, the cost of last purchased items is sold first. The value of the closing stock consists of the initial purchased items.

To report

The change incurred due to change of inventory method.