FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: Beginning inventory 23 units at $47 Sale 19 units at $68 First purchase 38 units at $49 Sale 36 units at $70 Second purchase 14 units at $50 Sale 12 units at $70 The firm uses the perpetual inventory system, and there are 8 units of the item on hand at the end of the year. a. What is the total cost of the ending inventory according to FIFO? b. What is the total cost of the ending inventory according to LIFO? $

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
23 units at $47
Sale
19 units at $68
First purchase
38 units at $49
Sale
36 units at $70
Second purchase
14 units at $50
12 units at $70
Sale
The firm uses the perpetual inventory system, and there are 8 units of the item on hand at the end of the year.
a. What is the total cost of the ending inventory according to FIFO?
$
b. What is the total cost of the ending inventory according to LIFO?
$
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 23 units at $47 Sale 19 units at $68 First purchase 38 units at $49 Sale 36 units at $70 Second purchase 14 units at $50 12 units at $70 Sale The firm uses the perpetual inventory system, and there are 8 units of the item on hand at the end of the year. a. What is the total cost of the ending inventory according to FIFO? $ b. What is the total cost of the ending inventory according to LIFO? $
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