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Question - Modelmania Ltd (ML)sells model cars. At the beginning of the March, ML had in beginning inventory 90 model cars with a unit cost of $35. During March ML made the following purchases of model cars.
Date
Item
Quantity (units)
Unit Cost
5th Mar.
Purchase
210
$40
13th Mar.
330
$45
21st Mar.
240
$50
26th Mar.
90
$55
During the March, 810 units were sold. Modelmania uses a Periodic Inventory System.
Required - Calculate ending inventory under inventory recording method FIFO (First in First Out).
Calculate ending inventory under inventory recording method LIFO (Last in First Out).
Which method results in the highest ending inventory?
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