eBook Show Me How Calculator Print Item FIFO and LIFO Costs Under Perpetual Inventory System The following units of a particular item were available for sale during the year: Beginning inventory 40 units @ $50 Sale 13 units @ $73 First purchase 29 units @ $52 Sale 36 units @ $73 Second purchase 11 units @ $53 Sale 6 units @ $74 The firm uses the perpetual inventory system, and there are 25 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? X Feedback Check My World a. Note that this exercise uses the perpetual inventory system. FIFO means that the first units purchased are assumed to be the most recent purchases. Think of your inventory in terms of "layers. The first sale comes from the oldest layer - beginning