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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