Question

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

Beginning inventory 30 units at $40
Sale 26 units at $58
First purchase 15 units at $41
Sale 11 units at $58
Second purchase 10 units at $42
Sale 9 units at $58

The firm uses the perpetual inventory system, and there are 9 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?

Answer 1

Best answer


a firm has beginning inventory of 300 units at a cost of 11 each. production during the period was 650 units at 12 each. if sales were 700 units what is the cost of goods sold (assume FIFO)