Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

I've seen a few examples like this, but I still don't understand the math on it, please explain with answer :) FIFO and LIFO Costs

I've seen a few examples like this, but I still don't understand the math on it, please explain with answer :)

FIFO and LIFO Costs Under Perpetual Inventory System

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

Beginning inventory 20 units at $48
Sale 16 units at $72
First purchase 27 units at $49
Sale 19 units at $73
Second purchase 25 units at $50
Sale 13 units at $74

The firm uses the perpetual inventory system, and there are 24 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_2

Step: 3

blur-text-image_3

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

Financial Accounting

Authors: Robert Libby

1st Canadian Edition

0070891737, 978-0070891739

More Books

Students explore these related Accounting questions

Question

Explain the Pascals Law ?

Answered: 3 weeks ago