Business, 02.03.2020 22:38 dontcareanyonemo

Following is a summary of beginning inventory, purchases, and sales. At what amount would the inventory be priced assuming, the first-in, first-out method is used under perpetual invventory procedure?

Beg. Inv., Jan. 1 2,400 units @ $8.80

Purchases:
Jan. 8 5,600 units @ $9.00
Mar. 15 2,000 units @ $9.10
Jul. 28 2,800 units @ $9.50
Nov. 30 400 units @ $9.70
Sales:
Feb. 13 3,000 units
Jun. 9 2,800 units
Sep. 22 1,400 units
At what amount would the inventory in the preceding question be priced if the last-in, first-out method were used under perpetual inventory procedure?

Under FIFO, net income exists if revenues are sufficient to cover the cost of the units of inventory sold.
Under LIFO, net income exists if revenues are sufficient to cover the cost of the units of inventory sold, provided new units are acquired before the end of the accounting period.
The principle argument for is that this method more precisely matches costs and revenues in current terms.
During a period of rising prices, will give a higher net income figure.

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Following is a summary of beginning inventory, purchases, and sales. At what amount would the invent...