Brooklyn Orthopedic Clinic maintains and sells an inventory of drugs for its patients. The following represents the activity for the past year, assuming no inventory at the beginning of the year:
a) Purchased 10 drugs at $1,000 each
b) Purchased 10 drugs at $1,250 each
c) Purchased 10 drugs at $1,500 each
d) Purchased 10 drugs at $1,600 each
e) Purchased 10 drugs at $1,750 each
f) Sold 35 drugs for the year at $2,500 each
1) Using the FIFO method, calculate the total available goods for sale, inventory expense, and ending inventory balance.
2) Using the LIFO method, calculate the total available goods for sale, inventory expense and ending inventory balance.
