FIFO LIFO accounting question.

In its first month of operations, Minh Lo Company made three purchases of merchandise in the following sequence: (1) 300 units at $28, (2) 400 units at $36, and (3) 500 units at $42. Assuming there are 400 units on hand, compute the cost of the ending inventory under: Minh Lo uses a periodic inventory system.... show more In its first month of operations, Minh Lo Company made three purchases of merchandise in the following sequence: (1) 300 units at $28, (2) 400 units at $36, and (3) 500 units at $42. Assuming there are 400 units on hand, compute the cost of the ending inventory under:

Minh Lo uses a periodic inventory system.


a.)FIFO method______________


b.)LIFO method______________




I understand that FIFO is using unit values of ascending chronological order, ie: sept 5, sept 18, sept 25.

And LIFO is the opposite, using unit values of descending chronological order, ie: sept 25, sept 18, sept 5


However I do not know how to do this question, what does the 400 in hand have to do with it? I have only seen these problems with a sales component so you can subtract the sales from inventory and purchases to get ending inventory, then apply FIFO LIFO rules to get their respective ending inventories.



Please advise.
Update: Thanks for the answers, seems all I did wrong was switch lifo and fifo values. I still dont know why I am calculating the cost for 400 units. What does 400 units on hand mean?
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