Reference no: EM133025260
Question - A) The Alpha company uses a periodic inventory system. The beginning balance of inventory and purchases made by the company during the month of July, 2020 are given below:
July 01: Beginning inventory, 625 units @ $32 per unit.
July 18: Inventory purchased, 775 units @ $36 per unit.
July 25: Inventory purchased, 580 units @ $39 per unit.
The Delta company sold 1,375 units during the month of July.
Required - Compute inventory on July 31, 2020 and cost of goods sold for the month of July using following inventory costing methods:
First in, first out (FIFO) method
Last in, first out (LIFO) method
B) What is the impact of valuing the Inventory under each of the methods for the above organization?