Murray, Inc., purchased a new inventory item two times during the month of April, as follows:
Apr. 5 100 units @ $5.00
Apr. 15 100 units @ $5.05
a. What is the amount of the ending inventory of this item on April 30 if the company has sold 75 units and uses the LIFO inventory method?
a. How would this amount differ if the company used the FIFO inventory method?
b. Due to ineffective controls while counting its inventory, Walker & Comer, inc., double-counted $50,000 of inventory at the end of the current year. Before discovering this error, the company's ending inventory was $670,000. How will correction of this error affect the company's inventory and cost of goods sold figures?