Problem
FIFO and LIFO costs under perpetual inventory system
The following units of an item were available for sale during the year:
|
Line Item Description
|
Units and Cost
|
|
Beginning inventory
|
37 units at $46
|
|
Sale
|
30 units at $71
|
|
First purchase
|
28 units at $47
|
|
Sale
|
19 units at $73
|
|
Second purchase
|
27 units at $48
|
|
Sale
|
22 units at $74
|
The firm uses the perpetual inventory system, and there are 21 units of the item on hand at the end of the year.
1) What is the total cost of the ending inventory according to FIFO?
2) What is the total cost of the ending inventory according to LIFO?