The following units of an item were available for sale during the year: Beginning inventory ................................. 21,600

Question:

The following units of an item were available for sale during the year:
Beginning inventory ................................. 21,600 units at $20.00
Sale ..................................................... 14,400 units at $40.00
First purchase ......................................... 48,000 units at $25.20
Sale .................................................... 36,000 units at $40.00
Second purchase ...................................... 45,000 units at $26.40
Sale ...................................................... 33,000 units at $40.00
The firm uses the perpetual inventory system, and there are 31,200 units of the item on hand at the end of the year. What is the total cost of the according to
(a) FIFO,
(b) LIFO?
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...