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a. What is the total cost of the ending inventory according to FIFO? 1,496,400 b. What is the total cost of the ending inventory according to LIFO? 1,445,200

a. What is the total cost of the ending inventory according to FIFO? 1,496,400 b. What is the total cost of the ending inventory according to LIFO? 1,445,200

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: Beginning inventory 8,100 units at $160 5,000 units at $300 Sale First purchase Sale Second purchase Sale 15,400 units at $167 12,600 units at $300 15,900 units at $172 13,100 units at $300 The firm uses the perpetual inventory system, and there are 8,700 units of the item on hand at the end of the year. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. a. What is the total cost of the ending inventory according to FIFO? 1,496,400 b. What is the total cost of the ending inventory according to LIFO? 1,445,200
Transcribed Image Text:FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: Beginning inventory 8,100 units at $160 5,000 units at $300 Sale First purchase Sale Second purchase Sale 15,400 units at $167 12,600 units at $300 15,900 units at $172 13,100 units at $300 The firm uses the perpetual inventory system, and there are 8,700 units of the item on hand at the end of the year. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. a. What is the total cost of the ending inventory according to FIFO? 1,496,400 b. What is the total cost of the ending inventory according to LIFO? 1,445,200
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