FIFO and LIFO Costs Under Perpetual Inventory System The following units of an i
ID: 2400002 • Letter: F
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 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? 23 units @ $41 13 units @ $62 27 units @ $42 22 units @ $62 30 units @ $43 19 units @ $62 b. What is the total cost of the ending inventory according to LIFO?Explanation / Answer
Req a:
Ending Inventory cost as per FIFO: $ 1118
Rreq b:
Ending Inventory cost as per LIFO: $ 1093
Explanation:
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Beg inv 23 41 943 First sale 13 41 533 10 41 40 First Purchase 27 42 1134 10 41 410 27 42 1134 Sale 10 41 410 12 42 504 15 42 630 Second purch. 30 43 1290 15 42 630 30 43 1290 Sale 15 42 630 4 43 172 26 43 1118 TOTAL 57 2424 54 2249 26 1118 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Beg inv 23 41 943 First sale 13 41 533 10 41 40 First Purchase 27 42 1134 10 41 410 27 42 1134 Sale 22 42 924 10 41 410 5 42 210 Second purch. 30 43 1290 10 41 410 5 42 210 30 43 1290 Sale 19 43 817 10 41 410 5 42 210 11 43 473 TOTAL 57 2424 54 2274 26 1093Related Questions
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