2. In its first month of operations, Cerretti Company made three purchases of merchandise in the following sequence

In its first month of operations, Cerretti Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $8, and (3) 500 units at $9. Assuming there are 300 units on hand, compute the cost of the ending inventory under (a) the FIFO method and (b) the LIFO method. Ceretti uses a periodic inventory system.

(a)          The ending inventory under FIFO consists of 300 units at $9 for a total allocation of $2,700.

 (b)         The ending inventory under LIFO consists of 300 units at $6 for a total allocation of $1,800.

Click here: 2. In its first month of operations, Cerretti Company made three purchases of merchandise in the following sequence