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    FIFO and LIFO Inventory Methods: changes to item 27

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    During June, the following changes in inventory item 27 took place:

    01-Jun Balance 1,400 units @ $24
    14 Purchased 800 units @ $36
    24 Purchased 700 units @ $30
    8 Sold 400 units @ $50
    10 Sold 1,000 units @ $40
    29 Sold 500 units @ $44

    Perpetual inventories are maintained.

    Instructions
    What is the cost of the ending inventory for item 27 under the following methods? (Show calculations.)
    (a) FIFO.
    (b) LIFO.

    © BrainMass Inc. brainmass.com June 3, 2020, 9:58 pm ad1c9bdddf
    https://brainmass.com/business/inventory/fifo-lifo-inventory-methods-changes-item-27-208556

    Solution Preview

    During June, the following changes in inventory item 27 took place:

    01-Jun Balance 1,400 units @ $24
    14 Purchased 800 units @ $36
    24 Purchased 700 units @ $30

    8 Sold 400 units @ $50
    10 Sold 1,000 units @ $40
    29 Sold 500 units @ ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer what is the cost of the ending inventory for item 27 under the following methods.

    $2.19

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