Question
The following units of an item were available for sale during the year: Beginning inventory 24 units at $40 Sale 14 units at $64 First
The following units of an item were available for sale during the year:
| Beginning inventory | 24 units at $40 |
| Sale | 14 units at $64 |
| First purchase | 38 units at $42 |
| Sale | 33 units at $65 |
| Second purchase | 25 units at $44 |
| Sale | 23 units at $67 |
The firm uses the perpetual inventory system, and there are 17units 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?
Step by Step Solution
3.40 Rating (169 Votes )
There are 3 Steps involved in it
Step: 1
ANSWER A Harods Company has a beginning inventory of 1000 units of product and purchases another 1000 units at 5 each during the first month of an acc...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial And Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
14th Edition
1337119202, 978-1337119207
