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Option #2: LIFO Perpetual vs. LIFO Periodic

Below is a record of the purchases and sales of inventory throughout the first four months.

 Units Cost/Price Per Unit 1/1/x7 Beginning Balance 100 $3.50 1/31/x7 Purchase 125$4.00 2/15/x7 Purchase 250 $4.50 2/25/x7 Sale 150$7.75 3/10/x7 Purchase 300 $5.00 3/31/x7 Purchase 75$5.50 4/10/x7 Sale 225 $8.25 4/15/x7 Purchase 100$6.00 4/30/x7 Sale 350 \$8.50

Requirement

1. Calculate the cost of goods sold under the LIFO Perpetual Method for each of the below sales.
 Units Cost Per Unit Total 2/25/x7 Sale Show Detail Show Detail 4/10/x7 Sale Show Detail Show Detail 4/30/x7 Sale Show Detail Show Detail Total
1. Calculate the cost of goods sold under the LIFO Periodic Method for each of the below sales.
 Units Cost Per Unit Total 2/25/x7 Sale Show Detail Show Detail 4/10/x7 Sale Show Detail Show Detail 4/30/x7 Sale Show Detail Show Detail Total
1. What is the main reason for the differences in the two methods?