the following units of a particular item were available for sale during the year
ID: 2399791 • Letter: T
Question
the following units of a particular item were available for sale during the year FIFO and LIFO Costs Under Perpetual Inventory System The following units of a particular iterm were available for sale during the year: Beginning inventory Sale First purchase Sale Second purchase Sale The firm uses the perpetual inventory system, and there are 33 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? 47 units $41 27 units @ $64 27 units o $43 23 units @ $65 25 units @ $45 16 units o $66 b. What is the total cost of the ending inventory according to LIFO?Explanation / Answer
a) Calculate ending inventory under FIFO perpetual inventory system :
Ending inventory value = (25*45+8*43) = $1469
b) Calculate ending inventory under LIFO perpetual inventory system :
Ending inventory value = (20*41+4*43+9*45) = $1397
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