eBook

Show Me How

FIFO and LIFO costs under perpetual inventory system

The following units of an item were available for sale during the year:

Beginning inventory $29$ units at $$44$

Sale $25$ units at $$68$

First purchase $,17$ units at $$46$

Sale $,10$ units at $$70$

Second purchase $,30$ units at $$47$

Sale $,15$ units at $$72$

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?

$$,$

b$.$ What is the total cost of the ending inventorify according to LIFO?