Question
The following units of an item were available for sale during the year: Beginning inventory 30 units at $42 Sale 25 units at $59 First
The following units of an item were available for sale during the year:
| Beginning inventory | 30 units at $42 |
| Sale | 25 units at $59 |
| First purchase | 40 units at $43 |
| Sale | 38 units at $60 |
| Second purchase | 27 units at $45 |
| Sale | 22 units at $61 |
The firm uses the perpetual inventory system, and there are 12 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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Financial And Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
14th Edition
1337119202, 978-1337119207
