FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: Beginning inventory 39 units at $50 Sale 28 units at $70 First purchase 24 units at $51 Sale 18 units at $70 Second purchase 26 units at $53 21 units at $70 Sale The firm uses the perpetual inventory system, and there are 22 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?

Cornerstones of Financial Accounting
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Chapter6: Cost Of Goods Sold And Inventory
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Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
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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
39 units at $50
Sale
28 units at $70
First purchase
24 units at $51
Sale
18 units at $70
Second purchase
26 units at $53
21 units at $70
Sale
The firm uses the perpetual inventory system, and there are 22 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 39 units at $50 Sale 28 units at $70 First purchase 24 units at $51 Sale 18 units at $70 Second purchase 26 units at $53 21 units at $70 Sale The firm uses the perpetual inventory system, and there are 22 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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