1.Given a particular set of factsand assumptions, the following pairs of amounts were computed using FIFO andLIFO. For each pair of amounts, indicate which amount resulted from applyingFIFO, and which amount resulted from applying LIFO. A. Prices are rising, ending inventory is:$20,650$19,400B. Prices are rising, cost of goods sold is:$10,650$9,400C. Prices are falling, ending inventory is:$5,500$5,000D. Prices are falling, cost of goods sold is:$6,200$7,000

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A: Item A cost=Quantity×Cost per unit=186×$6=$1,116

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A:

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A: Goods available for sale = Beginning inventory + Purchases = $200 + $800 = $1,000.

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A: Calculation of value of inventory using lower of cost or market value:

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A: Cost of goods sold  = opening stock  + purchases  - closing stock

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.