FIFO and LIFO Costs Under Perpetual Inventory System

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

Beginning inventory

21,000 units @ $44

Sale

7,733 units @ $62

First purchase

Sale

Second purchase

Sale

32,000 units @ $47

28,233 units @ $64

30,000 units @ $49

19,054 units @ $66

The firm uses the perpetual inventory system, and there are 27,980 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?