The following units of an item were available for sale during the year: Beginning inventory 35 units at $43 Sale 28 units at $65 First purchase 30 units at $45 Sale 25 units at $67 Second purchase 26 units at $46 Sale 19 units at $67 The firm uses the perpetual inventory system, and there are 19 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
Publisher:Libby
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
35 units at $43
Sale
28 units at $65
First purchase
30 units at $45
Sale
25 units at $67
Second purchase
26 units at $46
Sale
19 units at $67
The firm uses the perpetual inventory system, and there are 19 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 35 units at $43 Sale 28 units at $65 First purchase 30 units at $45 Sale 25 units at $67 Second purchase 26 units at $46 Sale 19 units at $67 The firm uses the perpetual inventory system, and there are 19 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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