FIFO and LIFO Inventory Methods
During June, the Following Changes

question 62

Essay

FIFO and LIFO inventory methods
During June, the following changes in inventory item 27 took place:
$$\begin{array} { l l l l } \text { June } & 1 & \text { Balance } & 1,400 \text { units } @ \$ 24 \\&14 & \text { Purchased } & \text { g00 units } @ \$ 56 \\&24 & \text { Purchased } & 700 \text { units } @ \$ 50 \\&8 & \text { sold } & 400 \text { units } @ \$ 50 \\&10 & \text { sold } & 1,000 \text { units } @ \$ 40 \\&29 & \text { sold } & 500 \text { units } @ \$ 44\end{array}$$ 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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Definitions:

Land Improvements

Enhancements made to a piece of land to increase its value or usability, such as landscaping, fencing, and adding utilities.

Patent

A legal document providing exclusive rights to inventors over their inventions, preventing others from making, using, or selling the invention without permission.

Straight-line Depreciation

A method of calculating the depreciation of an asset, which assumes the asset depreciates evenly over its useful life.

Salvage Value

The estimated residual value of an asset after its useful life has ended and it can no longer be used for productive purposes.