Chapter 6, Problem 63E

( Appendix 6B) Inventory Costing Methods: Periodic Inventory System

The inventory accounting records for Lee Enterprises contained the following data:

Required:

1. Calculate the cost of ending inventory and the cost of goods sold using the FIFO, LIFO, and average cost methods. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)

2. CONCEPTUAL CONNECTION Compare the ending inventory and cost of goods sold computed under all three methods. What can you conclude about the effects of the inventory costing methods on the balance sheet and the income statement?