Moore Supermarket began the year with 300 boxes of oat flake cereal with a unit cost of $1.89. During the year, the following additional purchases were made:

May 1 200 boxes@$2.10/each
June 1 400 boxes@$2.20/each
August 1 250 boxes@$2.40/each

At the end of the year, Moore had 475 boxes of oat flakes on the shelf and in the back room. Assuming LIFO, calculate the (a) cost of ending inventory and (b) cost of goods sold.

To calculate the cost of ending inventory and cost of goods sold using LIFO (Last In, First Out) method, we need to determine the cost of the most recent purchases first. Here's how:

1. Calculate the cost of the purchases made during the year:
May 1 purchase: 200 boxes * $2.10/box = $420
June 1 purchase: 400 boxes * $2.20/box = $880
August 1 purchase: 250 boxes * $2.40/box = $600

2. Total cost of purchases: $420 + $880 + $600 = $1900

3. Next, determine the cost of the remaining inventory from the beginning of the year:
300 boxes * $1.89/box = $567

4. Calculate the cost of the ending inventory:
Ending inventory = Total purchases - Cost of goods sold
475 boxes * Cost per box = $1900 - Cost of goods sold

Now, let's calculate the cost of ending inventory and cost of goods sold:

a) Cost of ending inventory:
Ending inventory = $1900 - Cost of goods sold (to be determined)
475 boxes * Cost per box = $1900 - Cost of goods sold

b) Cost of goods sold:
To find the cost of goods sold, subtract the ending inventory from the total cost of purchases:
Cost of goods sold = Total purchases - Ending inventory
Cost of goods sold = $1900 - (475 boxes * Cost per box)

Since the problem asks for the cost of ending inventory and cost of goods sold under LIFO, we'll need additional information about the order of sales to determine the exact numbers.