Question

The following units of an item were available for sale during the year: Beginning inventory 48,000 units @ $50 Sale 36,425 units @ $73 First purchase 16,000 units @ $52 Sale 23,241 units @ $74 Second purchase 25,000 units @ $53 Sale 26,526 units @ $74 The firm uses the perpetual inventory system, and there are 2,808 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? 148,824 < b. What is the total cost of the ending inventory according to LIFO? Х $ Feedback

pls answer for B and show work

Answer 1

STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
Beginning							48000	50	2400000
Sales				36425	50	1821250	11575	50	578750
First Purch.	16000	52	832000				11575	50	578750
							16000	52	832000
Sales				16000	52	832000
				7241	50	362050	4334	50	216700
II Purch.	25000	53	1325000				4334	50	216700
							25000	53	1325000
Sales				25000	53	1325000
				1526	50	76300	2808	50	140400
TOTAL	41000		2157000	86192		44,16,600	2808		140400
Inventory value as per LIFO:   $ 140,400.