(FIFO, LIFO, and Average Cost Determination) LoBianco Company’s
record of transactions for the month of April was as follows.

Purchases                                                                  Sales

April  1   (balance on hand)     600  @$6.00           April 3        500 @$10.00

4                                               1,500  @ 6.08            9                1300 @10.00

8                                                  800 @ 6.40             11                600  @ 11.00

13                                             1200 @ 6.50              23               1200  @11.00

21                                               700  @ 6.60             27                 900  @ 12.00

29                                               500  @ 6.78                                 4500

                                                  5300

Instructions

(a)Assuming that periodic inventory records are kept, compute the inventory at April
     30 using (1) LIFO and (2) average cost.

(b)Assuming that perpetual inventory records are kept in both units and dollars,
     determine the inventory at April 30 using (1) FIFO and (2) LIFO.

(c)Compute cost of goods sold assuming periodic inventory procedures and inventory
     priced at FIFO.

(d)In an inflationary period, which inventory method—FIFO, LIFO, average cost—will
     show the highest net income?