Computing the cost of the ending inventory


Problem: The Foley Company is a multi-product firm. Presented below is information concerning one of their products.

Date Transaction Quantity Cost

1-Jan Beginning Inventory 1,000 $12
4-Feb Purchase 2,000 $13
20-Feb Sale 1,000
2-Apr Purchase 4,000 $15
4-Nov Sale 4,000

Compute the cost of the ending inventory, assuming Foley uses

a.) Periodic -FIFO

b.) Perpetual-LIFO

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Accounting Basics: Computing the cost of the ending inventory
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