Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. fifo and lifo costs under perpetual inventory syst

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

Free

70.2K

Verified Solution

Question

Accounting

FIFO and LIFO Costs Under Perpetual Inventory System

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

Beginning inventory38 units at $45
Sale28 units at $70
First purchase29 units at $48
Sale10 units at $70
Second purchase28 units at $50
Sale43 units at $72

The firm uses the perpetual inventory system, and there are 14units 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?
$

Answer & Explanation Solved by verified expert
4.4 Ratings (860 Votes)

Ans. A FIFO :
Purchase Cost of goods sold Balance
Transaction Quantity Rate Total cost Quantity Rate Total cost Quantity Rate Total cost
Beginning inventory 38 $45.00 $1,710
Sales 28 $45.00 $1,260 10 $45.00 $450
First purchase 29 $48.00 $1,392 10 $45.00 $450
29 $48.00 $1,392
Sales 10 $45.00 $450 29 $48.00 $1,392
Second purchase 28 $50.00 $1,400 29 $48.00 $1,392
28 $50.00 $1,400
Sales 29 $48.00 $1,392
14 $50.00 $700 14 $50.00 $700
Total Cost of goods sold $3,802 Ending inventory $700
*In FIFO method the units that have purchased first are released the first one.
Ans. B Perpetual LIFO:
Purchase Cost of goods sold Balance
Date Quantity Rate Total cost Quantity Rate Total cost Quantity Rate Total cost
Beginning inventory 38 $45.00 $1,710
Sales 28 $45.00 $1,260 10 $45.00 $450
First purchase 29 $48.00 $1,392 10 $45.00 $450
29 $48.00 $1,392
Sales 10 $48.00 $480 10 $45.00 $450
19 $48.00 $912
Second purchase 28 $50.00 $1,400 10 $45.00 $450
19 $48.00 $912
28 $50.00 $1,400
Sales 28 $50.00 $1,400
15 $48.00 $720 10 $45.00 $450
4 $48.00 $192
Total Cost of goods sold $3,860 Ending inventory $642
*In LIFO method the units that have purchased last, are released the first one.

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

Select the incorrect statement O Zn 2 Cut and Cu have same number of d...

Basic Math
1.2K views

material to complete this problem Graph y 5x 3 Use the graphing tool to graph...

Psychology
1.2K views

While middle childhood is the developmental period centered on the child’s growing inclusion in the wider...

Mechanical Engineering
1.2K views

What is the difference between SMC-R50 composite and fabric reinforced composites? I know SMC uses random fiber...

Calculus
1.2K views

1 point What is the cardinality of each of the following sets a b 0...

Algebra
1.2K views

11 Write an equation expressing the volume of a box made from a paper x...

Accounting
1.2K views

During the month of May 20--, The General's Favorite Fishing Hole engaged in the...

Accounting
1.2K views

Accounting 203 Class Exercises Chapter 3 Part I - Transactions and...

Accounting
1.2K views

Sarasota Corporation was starting a new style of jacket and was monitoring the costs of...

Accounting
1.2K views

The Sarasota Company issued $230,000 of 12% bonds on January 1,2025 . The bonds are...

Accounting
1.2K views

Presented below is information related to Whispering Manufacturing Corporation. Prepare the entry to record the...

Accounting
1.2K views

The amount of increase or decrease in cost that is expected from a particular course...