FIFO and LIFO C Under Perpetual Inventory System The following units of an item were availate for sale during the year Beginning inventory Sale First purchase Sale Second purchase 22,000 11,656 25,000 units 12 21,526157 27,000 units @545 20,706 units The firm uses the perpetual inventory system, and there are 24,112 uns a. What is the total cost of the ending inventory according to POPO 1,085,040 b. What is the total cost of the ending inventory acanting to LIFO 1,007,600 end of the yea a. Note that this exercise uses the perpetual inventory system. FIFO means that the first units purchased am ending inventory is made up of the most recent purchases. Think of your inventory in terms of "layers" the f inventory. Is the remaining amount of the beginning inventory lever enough to satisfy the second sale? If not from the first purchase layer. Any remainder from the first purchase will then be considered as the oldest god from the first purchase is not enough to satisfy the third sale, then cost of merchandise suid will come from t second purchase make up the ending inventory b. Note that this exercise uses the perpetual inventory system when the perpetual inventory systems is use with an entry to record the cost of the merchandise sold UFO means the last units purchased are assumed the remaining or ending inventory is made up of the first purchases. Think of your inventory in terms of " Check My Work Al work sand MacBook Alt 2 44