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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?

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
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 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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