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:

The firm uses the perpetual inventory system, and there are 34 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?
$

Beginning inventory 41 units at $50 Sale 18 units at $78 First purchase 33 units at $52 Sale 23 units at $78 Second purchase 10 units at $53 Sale 9 units at $80

Explanation / Answer

Ans)

a) Total cost of ending inventory according to FIFO

24 X 52 + 10 X 53 = 1778

b) Total cost of the ending inventory according to LIFO

23 X 50 + 10 X 52 + 1 X 53 = 1723

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