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Gregor Inc. uses the LIFO cost-flow assumption to value inventory. Inventory for Gregor on January 1, 2011 was 100 units at a LIFO cost of $25 per unit. During the first quarter of 2011, 200 units were purchased costing an average of $40 per unit, and sales of 265 units at a retail price of $50 per unit were made.Assuming Gregor does not expect to replace the units of beginning inventory sold, what is the amount of cost of goods sold for the quarter ended March 31, 2011?
The effective interest method of amortization is being used. Pinkley expects the machine to have a ten-year life with no salvage value, and be depreciated on a straight-line basis. Collectibility of the rentals is reasonably predictable, and there..
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