Question
FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available for sale during the year: Beginning inventory 21,600 units
FIFO and LIFO Costs Under Perpetual Inventory System
The following units of an item were available for sale during the year:
| Beginning inventory | 21,600 units at $20.00 |
| Sale | 14,400 units at $40.00 |
| First purchase | 48,000 units at $25.20 |
| Sale | 36,000 units at $40.00 |
| Second purchase | 45,000 units at $26.40 |
| Sale | 33,000 units at $40.00 |
The firm uses the perpetual inventory system, and there are 31,200 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? $
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Integrated Audit Practice Case
Authors: David S. Kerr, Randal J. Elder, Alvin A. Arens
7th Edition
0912503688, 978-0912503684
