Hi, could you help me understand the following calculations given in Question 4, page 297 (FRA) in the official CFA curriculum 21/22 if the question asked to use the perpetual FIFO method rather than the perpetual LIFO method?
What is the value of ending inventory for the first quarter if the company uses a
perpetual LIFO inventory valuation method?
There are two tables with Units Purchased and Sold (first quarter) and Comparison of Inventory Methods and Model. I did not attach them as I was not sure if it would not break any copyrights (?)
Nevertheless, the correct answer is A, (300 × $20) + (500 × $17) = $14,500.
Do I understand it correctly that under FIFO, the ending inventory valuation would be
800 × $17 = $13,600?
Thank you in advance