FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available...

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Accounting

FIFO and LIFO Costs Under Perpetual Inventory System
The following units of an item were available for sale duringthe year:
Beginning inventory 43 units at $50
Sale 15 units at $78
First purchase 39 units at $51
Sale 15 units at $79
Second purchase 24 units at $54
Sale 25 units at $80
The firm uses the perpetual inventory system, and there are 51units of the item on hand at the end of the year.
a. What is the total cost of the endinginventory according to FIFO?
b. What is the total cost of the endinginventory according to LIFO?

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3.6 Ratings (407 Votes)

Total cost of Ending Inventory a FIFO 2673 b LIFO 2573 Workings a Purchases Cost of goods sold FIFO Inventory on hand FIFO Quantity Cost per unit Total cost Quantity Cost per unit See Answer

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Beginning inventory	43 units at $50
Sale	15 units at $78
First purchase	39 units at $51
Sale	15 units at $79
Second purchase	24 units at $54
Sale	25 units at $80