FIFO and LIFO Costs Under Perpetual Inventory Systenm The following units of an
ID: 2391632 • Letter: F
Question
FIFO and LIFO Costs Under Perpetual Inventory Systenm The following units of an item were available for sale during the year: Beginning inventory Sale First purchase Sale Second purchase 29 units at $40 17 units at $64 27 units at $42 19 units at $64 17 units at $45 13 units at $64 The firm uses the perpetual inventory system, and there are 24 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? 315 X b. What is the total cost of the ending inventory according to LIFO? 996Explanation / Answer
Total Sales = 17 + 19 +13
= 49 Units
Cost of Ending Inventory using FIFO = 7 Units * $ 42 + 17 Units * $ 45
= $ 1,059
Hence, the correct answer is $ 1,059
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.