The following units of an item were available for sale during the year: Beginning inventory 45 units at $44 Sale 25 units at $68 First purchase 40 units at $46 Sale 48 units at $69 Second purchase 29 units at $48 Sale 6 units at $71 The firm uses the perpetual inventory system, and there are 35 units of the item on hand at the end of the year. a. What is the total cost of the ending inventory according to FIFO?$ 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 45 units at $44 Sale 25 units at $68 First purchase 40 units at $46 Sale 48 units at $69 Second purchase 29 units at $48 Sale 6 units at $71 The firm uses the perpetual inventory system, and there are 35 units of the item on hand at the end of the year. a. What is the total cost of the ending inventory according to FIFO?$ b. What is the total cost of the ending inventory according to LIFO?$
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 3PEA: Beginning inventory, purchases, and sales for Item Zebra 9x are as follows: Assuming a perpetual...
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The following units of an item were available for sale during the year:
Beginning inventory | 45 units at $44 |
Sale | 25 units at $68 |
First purchase | 40 units at $46 |
Sale | 48 units at $69 |
Second purchase | 29 units at $48 |
Sale | 6 units at $71 |
The firm uses the perpetual inventory system, and there are 35 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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