+ eBook 3 My Home CengageNOW 2 Online teachinx ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Show Me How Calculator FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available for sale during the year: Beginning inventory 44 units at $44 Sale First purchase 15 units at $47 Sale Second purchase 17 units at $48 Sale 23 units at $70 The firm uses the perpetual inventory system, and there are 11 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? 33 units at $70 9 units at $70 b. What is the total cost of the ending inventory according to LIFO? Feedback Check My Work a. Note that this exercise uses the perpetual inventory system. FIFO means that the first units purchased are assumed to be the first tot inventory is made up of the most recent purchases. Think of your inventory in terms of "layers. The first sale comes from the oldest laye remaining amount of the beginning inventory layer enough to satisfy the second sale? If not the remaining amount of units sold should t purchase layer. Any remainder from the first purchase will then be considered as the oldest goods to be used for the second sale. If the purchase is not enough to satisfy the third sale then cost of merchandise sold will come from the second purchase. The remaining units makeun the ending inventory Check My Work ORI **