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

Question:

The following units of a particular item were available for sale during the year:
Beginning inventory ....... 100 units at $60
Sale ............... 75 units at $112
First purchase ............ 155 units at $65
Sale ............... 135 units at $112
Second purchase .......... 200 units at $72
Sale ............... 175 units at $112
The firm uses the perpetual inventory system, and there are 70 units of the item on hand at the end of the year. What is the total cost of the 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 =...