The following units of a particular item were available for sale during the year
ID: 2435248 • Letter: T
Question
The following units of a particular item were available for sale during the year:Begining inventory 150 units at $75
Sale 120 units at $125
First Purchase 400 units at $78
Sale 200 units at $125
Second Purchase 300 units at $80
Sale 290 units at $125
The firm uses the perpetual inventory system, and there are 240 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. What is the total cost of the ending inventory according to FIFO? 240 x $80 = $19,200 b. What is the total cost of the ending inventory according to LIFO? 30 units @ 75 = 2,250 200 units @ 78 = 15,600 10 units @ 80 = 800 Total = $18,650
Related Questions
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.