FIFO and LIFO costs under perpetual inventory systemThe following units of an item were available for sale during the year:Beginning inventory22 units at $4515 units at $6326 units at $48SaleFirst purchaseSaleSecond purchaseSaleThe firm uses the perpetual inventory system, and there are 16 units of the item on hand atthe end of the year.a. What is the total cost of the ending inventory according to FIFO?18 units at $6516 units at $5015 units at $67b. What is the total cost of the ending inventory according to LIFO?

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Description: FIFO and LIFO costs under perpetual inventory systemThe following units of an item were available for sale during the year:Beginning inventory22 units at $4515 units at $6326 units at $48SaleFirst purchaseSaleSecond purchaseSaleThe firm uses the per

For perpetual inventory system,the inventory account is updated after every transactions. The cost…

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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 22 units at $45 Sale 15 units at $63 First purchase 26 units at $48 Sale 18 units at $65 Second purchase 16 units at $50 Sale 15 units at $67 The firm uses the perpetual inventory system, and there are 16 units of the item on hand at the end of the year. 51502

FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: Beginning inventory 22 units at $45 Sale 15 units at $63 First purchase 26 units at $48 Sale 18 units at $65 Second purchase 16 units at $50 Sale 15 units at $67 The firm uses the perpetual inventory system, and there are 16 units of the item on hand at the end of the year. 51502

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 10EA: Calculate the cost of goods sold dollar value for A67 Company for the month, considering the...

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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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
22 units at $45
15 units at $63
26 units at $48
Sale
First purchase
Sale
Second purchase
Sale
The firm uses the perpetual inventory system, and there are 16 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?
18 units at $65
16 units at $50
15 units at $67
b. What is the total cost of the ending inventory according to LIFO?

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