Question

FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: Beginning inventory 7,700 units at $170 Sale 4,800 units at $310 First purchase 14,500 units at $177 Sale 13,100 units at $310 Second purchase 15,500 units at $181 14,100 units at $310 Sale The firm uses the perpetual inventory system, and there are 5,700 units of the item on hand at the end of the year. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. x Open spreadsheet a. What is the total cost of the ending inventory according to FIFO? Round your answer to the nearest dollar. b. What is the total cost of the ending inventory according to LIFO? Round your answer to the nearest dollar.

Answer 1

cost of goods sold units unit price ending inventory units unit price total total FIFO perpetual assumption cost of goods available for sale units unit price total beginning balance 7700 170 1 309000 sales 1st purchase 14500 177 2566500 balance sales 4800 170 816000 / 2900 14500 17400 170 177 493000 2566500 3059500 2900 10200 170 177 493000 1805400 177 181 15500 181 2805500 4300 15500 19800 2nd purchase balance sale 761100 2805500 3566600 4300 9800 32000 177 181 761100 1773800 5649300 5700 181 1031700 1031700 balance 37700 6681000 5700

cost of goods sold units unit price ending inventory units unit price date total total LIFO perpetual assumption cost of goods available for sale units unit price total beginning balance 7700 170 1 309000 sales 1st purchase 1 14500 177 2566500 balance sales 4800 170 816000 170 2900 14500 17400 177 493000 2566500 3059500 13100 177 2318700 2900 170 493000 1400 15500 2805500 181 2nd purchase balance sale 247800 2805500 3546300 15500 19800 2900 1400 14100 181 2552100 493000 247800 253400 1400 balance 37700 6681000 32000 5686800 5700 994200 answers ending inventory FIFO ending inventory LIFO 1031700 994200