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On May 1, Widget Company had 10 gadgets in its Inventory that cost $5 each. On May 10, it sold 5 gadgets. On May 15, it bought 20 more gadgets that cost $6 each. At May 31, it had 25 gadgets in ending inventory. Cost of Goods Sold using LIFO perpetual will be ______ Cost of Goods Sold using LIFO periodic inventory.

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anthougo

The cost of goods sold using the LIFO perpetual will be $25 ($5 x 5), while the cost of goods sold using the LIFO periodic is $30 ($6 x 5).

What if the LIFO method?

The LIFO method is a cost flow assumption that is based on valuing the cost of goods sold based on the cost of items in stock at the end of the period (periodic) or the period when the stock was sold (perpetual) by assuming that the last stock is sold first.

Data and Calculations:

Date       Description              Units  Unit Cost       Total Cost

May 1      Beginning inventory   10       $5                  $50

May 10    Sales                           -5

May 15    Purchases                  20       $6                   $60

May 31    Ending inventory       25

Thus, the cost of goods sold using the LIFO perpetual will be $25 ($5 x 5), while the cost of goods sold using the LIFO periodic is $30 ($6 x 5).

Learn more about the LIFO method at https://brainly.com/question/10026597

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