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 ........ 180 units at $80
Sale ............. 120 units at $125
First purchase ......... 400 units at $82
Sale ............. 300 units at $125
Second purchase ........ 300 units at $84
Sale ............ 275 units at $125
The firm uses the perpetual inventory system, and there are 185 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 =...