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 Sale Second purchase Sale 33 units at $44 21 units at $62 30 units at $45 10 units at $63 17 units at $47 29 units at $64 the perpetual inventory system, and there are 20 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) FIFO Purchases Sales Balance Particulars Units Unit Cost Total Units Unit Cost Total Units Unit Cost Total Beginning Invenory - - - - - - 33 44 1452 Sale 21 44 924 12 44 528 First Purchase 30 45 1350 12 44 528 30 45 1350 Sale 10 44 440 2 44 88 30 45 1350 Second purchase 17 47 799 2 44 88 30 45 1350 17 47 799 Sale 2 44 88 3 45 135 27 45 1215 17 47 799 Therefore cost of ending inventory = 135+799= 934 a) LIFO Purchases Sales Balance Particulars Units Unit Cost Total Units Unit Cost Total Units Unit Cost Total Beginning Invenory - - - - - - 33 44 1452 Sale 21 44 924 12 44 528 First Purchase 30 45 1350 12 44 528 30 45 1350 Sale 10 45 450 12 44 528 20 45 900 Second purchase 17 47 799 12 44 528 20 45 900 17 47 799 Sale 17 47 799 12 44 528 12 45 540 8 45 360 Therefore cost of ending inventory = 528+360= 888

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

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