FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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3. 

FIFO and LIFO costs under perpetual inventory system

The following units of an item were available for sale during the year:

Beginning inventory 9,200 units at $150
Sale 5,400 units at $250
First purchase 12,800 units at $155
Sale 10,400 units at $250
Second purchase 14,100 units at $162
Sale 12,600 units at $250

The firm uses the perpetual inventory system, and there are 7,700 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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