Question
Perpetual: Inventory costing with FIFO A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company
Perpetual: Inventory costing with FIFO
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 360 units. Ending inventory at January 31 totals 130 units.
| Units | Unit Cost | ||
Beginning inventory on January 1 | 320 | $ | 3.10 |
|
Purchase on January 9 | 70 |
| 3.30 |
|
Purchase on January 25 | 100 |
| 3.40 |
|
|
Required: Assume the perpetual inventory system is used and then determine the costs assigned to ending inventory when costs are assigned based on the FIFO method.
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 320 units. Ending inventory at January 31 totals 140 units.
| Units | Unit Cost | ||
Beginning inventory on January 1 | 290 | $ | 2.70 |
|
Purchase on January 9 | 70 |
| 2.90 |
|
Purchase on January 25 | 100 |
| 3.04 |
|
|
Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO.
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