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.