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A company began 2024 with 15,000 units of inventory on hand. The cost of each unit was $5.00. During 2024, an additional 35,000 units were purchased at a single unit cost, and 25,000 units remained on hand at the end of 2024 (25,000 units therefore were sold during 2024). The company uses a periodic inventory system. Cost of goods sold for 2024, applying the average cost method, is $142,500. The company is interested in determining what cost of goods sold would have been if the FIFO or LIFO methods were used.

A company began 2024 with 15,000 units of inventory on hand. The cost of each unit was $5.00. During 2024, an additional 35,000 units were purchased at a single unit cost, and 25,000 units remained on hand at the end of 2024 (25,000 units therefore were sold during 2024). The company uses a periodic inventory system. Cost of goods sold for 2024, applying the average cost method, is $142,500. The company is interested in determining what cost of goods sold would have been if the FIFO or LIFO methods were used.

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! Required information [The following information applies to the questions displayed below.] A company began 2024 with 15,000 units of inventory on hand. The cost of each unit was $5.00. During 2024, an additional 35,000 units were purchased at a single unit cost, and 25,000 units remained on hand at the end of 2024 (25,000 units therefore were sold during 2024). The company uses a periodic inventory system. Cost of goods sold for 2024, applying the average cost method, is $142,500. 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 2024 using the FIFO method. [Hint: Determine the cost per unit of 2024 purchases.] Note: Do not round intermediate calculations. FIFO cost of goods sold
Transcribed Image Text:! Required information [The following information applies to the questions displayed below.] A company began 2024 with 15,000 units of inventory on hand. The cost of each unit was $5.00. During 2024, an additional 35,000 units were purchased at a single unit cost, and 25,000 units remained on hand at the end of 2024 (25,000 units therefore were sold during 2024). The company uses a periodic inventory system. Cost of goods sold for 2024, applying the average cost method, is $142,500. 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 2024 using the FIFO method. [Hint: Determine the cost per unit of 2024 purchases.] Note: Do not round intermediate calculations. FIFO cost of goods sold
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