Study the FIFO and LIFO explanations in the chapter. Required:


Question Description:

20

Study the FIFO and LIFO explanations in the chapter.
Required:
Compute ending FIFO inventory and cost of goods sold. Assume $90,000 sales; beginning inventory 500 units @$50; purchases of 400 units @$50; 100 units @$65; 400 units @$80
Also compute the cost of goods sold percentage of sales
Compute ending LIFO inventory and cost of goods sold, using same assumptions.
Also compute the cost of goods sold percentage of sales
Comment on the difference in outcomes

Answer

20