Question
The following units of an item were available for sale during the year: Beginning inventory 7,200 units at $160 Sale 4,800 units at $300 First
The following units of an item were available for sale during the year:
| Beginning inventory | 7,200 units at $160 |
| Sale | 4,800 units at $300 |
| First purchase | 16,000 units at $168 |
| Sale | 12,000 units at $300 |
| Second purchase | 15,000 units at $176 |
| Sale | 11,000 units at $300 |
The firm uses the perpetual inventory system, and there are 10,400 units of the item on hand at the end of the year. What is the total cost of the ending inventory according to (A) FIFO, and (B) LIFO? I need step by step solution to understand how to work it properly
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Financial Accounting Theory and Analysis Text and Cases
Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey
10th edition
470646284, 978-0470646281
