FIFO and LIFO Costs Under Perpetual Inventory System The following units of a pa
ID: 2379333 • Letter: F
Question
FIFO and LIFO Costs Under Perpetual Inventory System
The following units of a particular item were available for sale during the year:
The firm uses the perpetual inventory system, and there are 7 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?
$
FIFO and LIFO Costs Under Perpetual Inventory System
The following units of a particular item were available for sale during the year:
Beginning inventory 45 units @ $45 Sale 13 units @ $70 First purchase 28 units @ $48 Sale 53 units @ $71 Second purchase 17 units @ $49 Sale 17 units @ $71The firm uses the perpetual inventory system, and there are 7 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?
$
Explanation / Answer
a) What is the total cost of the ending inventory according to FIFO?
7* $49 =$343
b)What is the total cost of the ending inventory according to LIFO?
7*$45 =$315
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