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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.

#### 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