Solution-Determine the cost of goods sold using the FIFO

Determine the cost of goods sold using the FIFO method

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Reference no: EM132572736

Question - Causwell Company began 2021 with 23,000 units of inventory on hand. The cost of each unit was $5.00. During 2021 an additional 40,000 units were purchased at a single unit cost, and 33,000 units remained on hand at the end of 2021 (30,000 units therefore were sold during 2021). Causwell uses a periodic inventory system. Cost of goods sold for 2021, applying the average cost method, is $174,000. The company is interested in determining what cost of goods sold would have been if the FIFO or LIFO methods were used.

Required -

1. Determine the cost of goods sold for 2021 using the FIFO method. [Hint: Determine the cost per unit of 2021 purchases.]

2. Determine the cost of goods sold for 2021 using the LIFO method.

Reference no: EM132572736

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Determine the cost of goods sold using the FIFO method

Reference no: EM132572736

Reference no: EM132572736

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