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Question Content Area FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: Line

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FIFO and LIFO costs under perpetual inventory system

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

Line Item Description Units and Cost
Beginning inventory 48 units at $41
Sale 36 units at $64
First purchase 22 units at $42
Sale 16 units at $65
Second purchase 26 units at $44
Sale 22 units at $66

The firm uses the perpetual inventory system, and there are 22 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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