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The following units of an item were available for sale during the year: Beginning inventory Sale First purchase Sale Second purchase Sale 8,100 units at $180 5,300 units at $300 15,000 units at $185 13,000 units at $300 16,000 units at $192 14,000 units at $300 The firm uses the perpetual inventory system, and there are 6,800 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? $ 1,305,600 V b. What is the total cost of the ending inventory according to LIFO? $ 1,224,000 X

The following units of an item were available for sale during the year: Beginning inventory Sale First purchase Sale Second purchase Sale 8,100 units at $180 5,300 units at $300 15,000 units at $185 13,000 units at $300 16,000 units at $192 14,000 units at $300 The firm uses the perpetual inventory system, and there are 6,800 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? $ 1,305,600 V b. What is the total cost of the ending inventory according to LIFO? $ 1,224,000 X

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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The following units of an item were available for sale during the year: Beginning inventory Sale First purchase Sale Second purchase Sale 8,100 units at $180 5,300 units at $300 15,000 units at $185 13,000 units at $300 16,000 units at $192 14,000 units at $300 The firm uses the perpetual inventory system, and there are 6,800 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? $ 1,305,600 V b. What is the total cost of the ending inventory according to LIFO? $ 1,224,000 X
Transcribed Image Text:The following units of an item were available for sale during the year: Beginning inventory Sale First purchase Sale Second purchase Sale 8,100 units at $180 5,300 units at $300 15,000 units at $185 13,000 units at $300 16,000 units at $192 14,000 units at $300 The firm uses the perpetual inventory system, and there are 6,800 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? $ 1,305,600 V b. What is the total cost of the ending inventory according to LIFO? $ 1,224,000 X
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