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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.

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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