The following units of an item were available for sale during the year: Beginning inventory 31 units at $43 Sale 25 units at $69 First purchase 29 units at $45 Sale 28 units at $69 Second purchase 22 units at $46 Sale 7 units at $71 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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
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
31 units at $43
Sale
25 units at $69
First purchase
29 units at $45
Sale
28 units at $69
Second purchase
22 units at $46
Sale
7 units at $71
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 31 units at $43 Sale 25 units at $69 First purchase 29 units at $45 Sale 28 units at $69 Second purchase 22 units at $46 Sale 7 units at $71 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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