Question
FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available for sale during the year: Beginning inventory 20,000 units
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FIFO and LIFO Costs Under Perpetual Inventory System
The following units of an item were available for sale during the year:
Beginning inventory 20,000 units @ $45 Sale 18,871 units @ $63 First purchase 38,000 units @ $46 Sale 25,197 units @ $65 Second purchase 26,000 units @ $47 Sale 15,506 units @ $65
The firm uses the perpetual inventory system, and there are 24,426 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? $fill in the blank 1
b. What is the total cost of the ending inventory according to LIFO? $fill in the blank 2
FIFO and LIFO Costs Under Perpetual Inventory System
The following units of an item were available for sale during the year:
| Beginning inventory | 20,000 units @ $45 |
| Sale | 18,871 units @ $63 |
| First purchase | 38,000 units @ $46 |
| Sale | 25,197 units @ $65 |
| Second purchase | 26,000 units @ $47 |
| Sale | 15,506 units @ $65 |
The firm uses the perpetual inventory system, and there are 24,426 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? $fill in the blank 1
b. What is the total cost of the ending inventory according to LIFO? $fill in the blank 2
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Financial Reporting Financial Statement Analysis and Valuation
Authors: Clyde P. Stickney
6th edition
324302959, 978-0324302967, 324302967, 978-0324302950
