Purchase Solution

FIFO and LIFO inventory systems

Not what you're looking for?

Ask Custom Question

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

June 1 Balance 1,400 units @ $24

14 Purchase 800 units @ $35
24 Purchase 700 units @ $30

8 Sold 400 units @ $50

10 Sold 900 units @ $40
29 Sold 600 units @ $44

Perpetual inventories are maintained.

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

Purchase this Solution

Solution Summary

This solution is comprised of a detailed explanation to answer what is the cost of the ending inventory for item 27 under FIFO and LIFO method.

Solution Preview

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

June 1 Balance 1,400 units @ $24

14 Purchase 800 units @ $35
24 Purchase 700 units @ $30

8 Sold 400 units @ $50
10 Sold 900 units @ $40
29 Sold 600 ...

Purchase this Solution


Free BrainMass Quizzes
Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Introduction to Finance

This quiz test introductory finance topics.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.