Question 12

FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available for sale during the year: Beginning inventory 23,000 units @ $45 Sale 1,775 units @ $63 First purchase 25,000 units @ $48 Sale 24,519 units @ $64 Second purchase 29,000 units @ $49 Sale 25,784 units @ $64 The firm uses the perpetual inventory system, and there are 24,922 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