Reference no: EM132420870
The Inventory records for D. small had the following:
The balance on May [email protected]
Purchases SALES
May-02 1,000 @ $9.20 May-05 950 @ $12.50
May-08 400 @ $9.25 May-10 600 @ $13.60
May-15 1,200@ $10.00 May-12 300 @ $14.80
May-18 700 @ $10.20 May-20 1,500 @ $15.00
May-25 500 @ $11.50 May-26 800 @ $16.00
May-27 600 @ $12.00 May-30 300 @ $18.00
May-31 200@$ 12.5
Total 5400 Total 4450
(a) Assuming that periodic inventory records are kept, value inventory at May 31, 2019 using AVCO.
(b) Assuming that perpetual inventory records are kept value inventory at May 31, 2019 using FIFO.
(c) In an inflationary period, explain which inventory method (FIFO or AVCO) will show the higher net income.