In its first month of operations, Bramble Corp. made three purchases of merchandise in the following sequence: (1) 240 units at $4, (2) 340 units at $6, and (3) 440 units at $7. Assuming there are 140 units on hand at the end of the period, compute the cost of the ending inventory under (a) the FIFO method and (b) the LIFO method. Bramble Corp. uses a periodic inventory system. FIFO LIFO The Ending Inventory $Enter a dollar amount $Enter a dollar amount Click if you would like to Show Work for this question: Open Show Work

The FIFO (First-In, First-Out) method assumes that the earliest goods purchased are the first to be sold, while the LIFO (Last-In, First-Out) method assumes that the latest goods purchased are the first to be sold. 

We will calculate First a) FIFO Method:

Since FIFO assumes that the oldest inventory is sold first, we will use the cost of the most recent purchases to determine the cost of the ending inventory. We start by "selling" the newest inventory until we have accounted for all units that are not part of the ending inventory.

=(240 + 340 + 440) - 140

 = 1020 - 140

 = 880 units.

FIFO sells older units first, let's deduct units from the beginning.

All 240 units at $4 are sold, Next 340 units at $6 are sold.

=880 - (240 + 340)

= 880 - 580 

= 300

440 units purchased last at $7 are sold.

So there are 440 - 300 = 140 units left.

The 140 units that are left come from the last purchase at $7 per unit.

the cost of the ending inventory under FIFO is: 

140 (units) * $7(unit) = $980.

Now We Will Calculate LIFO Method.

We have sold the same total of 880 units, but in reverse order.

 First, we sell 440 units at $7 from the last purchase. 

We sell 340 units at $6 from the second purchase.

we have sold,

 880 - 440 = 440 units so far.

We need to sell, 

= 880 - 440 - 340 

= 440 - 340

 = 100 more units to reach the 880, which comes from the first purchase.

So there are, 240 - 100 = 140 units left from the first purchase.

The 140 units that are left come from the first purchase at $4 per unit.

Hence, the cost of the ending inventory under LIFO is:

 140 (units) * $4(unit) = $560

Therefore, the ending inventory under FIFO is $980, and under LIFO is $560.