The following units of a particular item were available for sale during the year: Beginning inventory ........36

Question:

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

Beginning inventory ........36 units at $400

Sale ................24 units at $1,000

First purchase ............80 units at $420

Sale ...............60 units at $1,000

Second purchase ..........75 units at $440

Sale ...............55 units at $1,000

The firm uses the perpetual inventory system, and there are 52 units of the item on hand at the end of the year. What is the total cost of the ending inventory according to

(a) FIFO,

(b) LIFO?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...