FIFO and LIFO Costs Under Perpetual Inventory System The following units of an i

Question

FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available for sale during the year: Beginning inventory Sale First purchase 23 units @ $41 13 units @ $62 27 units @$42 22 units @ $62 30 units $43 19 units @ $62 Sale Second purchase Sale The firm uses the perpetual inventory system, and there are 26 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 Cost of ending inventory = (26*43)= $118 b Cost of ending inventory = (23-13)*41+(27-22)*42+(30-19)*43= $1093

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.