Answer:
FIFO
Cost of Merchandise Sold = $166
Closing Inventory value = $128
LIFO
(a) Cost of Merchandise Sold = $171
(b) Closing Inventory value= $125
Explanation:
FIFO
Under FIFO Inventory costing the unit purchased first will be sold first and recently purchased unit will be sold at last.
Date Description Units Rate Balance
April 1 Beginning Inventory 10 units $15 $150
April 3 Sale 7 units $15 -$105
April 10 Purchased 9 units $16 +$144
April 23 Sale 3 units $15 -$45
Sale 1 units $16 -$16
Cost of Merchandise Sold = $105 + 45 + 16 = $166
Closing Inventory value = 8 x $16 = $128
LIFO
Under LIFO Inventory costing the unit purchased at last will be sold first and purchased earlier unit will be sold at last.
Date Description Units Rate Balance
April 1 Beginning Inventory 10 units $15 $150
April 3 Sale 7 units $15 -$105
April 10 Purchased 9 units $16 +$144
April 23 Sale 4 units $16 -$64
(a) Cost of Merchandise Sold = $105 + $64 = $171
(b) Closing Inventory value = (3 x $15) + ( 5 x $16 ) = $125
