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X y?,\'cengageNowv2lOnline × DeAnza College. Topsmx VS MyPortal / Foothill-De A

ID: 2395550 • Letter: X

Question

X y?,'cengageNowv2lOnline × DeAnza College. Topsmx VS MyPortal / Foothill-De A X ow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator-assi; eBook Show Me How Calculator FIFO and LIFO Costs Under Perpetual Inventory Systemm The following units of an item were available for sale during the year: 22 units $49 17 units $71 30 units $51 19 units $72 29 units $52 17 units @ $72 Beginning inventory Sale First purchase Sale Second purchase Sale The firm uses the perpetual inventory system, and there are 28 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?

Explanation / Answer

(a)Total Cost of Ending Inventory according to FIFO = $1,456

FIFO Method Inventory Schedule

Date

Qty Purchased

Unit Cost

Total Cost

Qty Sold

Unit cost

Cost of goods sold

Ending Inv.Qty

Unit Cost

Total Inventory

Beginning

Inventory

22

49

1078

Sale

17

49

833

5

49

245

First purchase

30

51

1530

5

49

245

30

51

1530

Sale

5

49

245

16

51

816

14

51

714

Second Purchase

29

52

1508

16

51

816

29

52

1508

Sale

16

51

816

28

52

1456

1

52

52

TOTAL

28

52

1456

“Ending Inventory according to FIFO = $1,456 “

(b)Total Cost of Ending Inventory according to LIFO = $1,430

LIFO Method Inventory Schedule

Date

Qty Purchased

Unit Cost

Total Cost

Qty Sold

Unit cost

Cost of goods sold

Ending Inv.Qty

Unit Cost

Total Inventory

Beginning

Inventory

22

49

1078

Sale

17

49

833

5

49

245

First purchase

30

51

1530

5

49

245

30

51

1530

Sale

19

51

969

5

49

245

11

51

561

Second Purchase

29

52

1508

5

49

245

11

51

561

29

52

1508

Sale

17

52

884

5

49

245

11

51

561

12

52

624

TOTAL

28

1430

“ Ending Inventory according to LIFO = $1,430 “

Date

Qty Purchased

Unit Cost

Total Cost

Qty Sold

Unit cost

Cost of goods sold

Ending Inv.Qty

Unit Cost

Total Inventory

Beginning

Inventory

22

49

1078

Sale

17

49

833

5

49

245

First purchase

30

51

1530

5

49

245

30

51

1530

Sale

5

49

245

16

51

816

14

51

714

Second Purchase

29

52

1508

16

51

816

29

52

1508

Sale

16

51

816

28

52

1456

1

52

52

TOTAL

28

52

1456