Question
The following units of an item were available for sale during the year: Beginning inventory 23 units at $40 Sale 20 units at $60 First
The following units of an item were available for sale during the year:
| Beginning inventory | 23 units at $40 |
| Sale | 20 units at $60 |
| First purchase | 20 units at $41 |
| Sale | 5 units at $60 |
| Second purchase | 26 units at $43 |
| Sale | 18 units at $62 |
The firm uses the perpetual inventory system, and there are 26 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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Accounting Information Systems Understanding Business Processes
Authors: Brett Considine, Alison Parkes, Karin Olesen, Michael Lee, Derek Speer
3rd Edition
1742165559, 978-1742165554
