FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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FIFO and LIFO Costs Under Perpetual Inventory System
The following units of an item were available for sale during the year:
Beginning inventory
21 units at $40
Sale
15 units at $58
First purchase
25 units at $43
Sale
18 units at $60
Second purchase
17 units at $45
Sale
13 units at $62
The firm uses the perpetual inventory system, and there are 17 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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Transcribed Image Text:FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available for sale during the year: Beginning inventory 21 units at $40 Sale 15 units at $58 First purchase 25 units at $43 Sale 18 units at $60 Second purchase 17 units at $45 Sale 13 units at $62 The firm uses the perpetual inventory system, and there are 17 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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