Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: Beginning inventory 30 units

FIFO and LIFO costs under perpetual inventory system

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

Beginning inventory 30 units at $42
Sale 25 units at $59
First purchase 40 units at $43
Sale 38 units at $60
Second purchase 27 units at $45
Sale 22 units at $61

The firm uses the perpetual inventory system, and there are 12 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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Company Accounting

Authors: Ken Leo, John Hoggett, John Sweeting, Jennie Radford

8th Edition

0470819731, 978-0470819739

Students also viewed these Accounting questions

Question

Why do mudflows move?

Answered: 1 week ago