A company began 2024 with 28,000 units of inventory on hand. The cost of each unit was $4.00. During 2024, an additional 48,000 units were purchased at a single unit cost, and 38,000 units remained on hand at the end of 2024 (38,000 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 $174,800. 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.]
A company began 2024 with 28,000 units of inventory on hand. The cost of each unit was $4.00. During 2024, an additional 48,000 units were purchased at a single unit cost, and 38,000 units remained on hand at the end of 2024 (38,000 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 $174,800. 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.]
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![A company began 2024 with 28,000 units of inventory
on hand. The cost of each unit was $4.00. During
2024, an additional 48,000 units were purchased at a
single unit cost, and 38,000 units remained on hand at
the end of 2024 (38,000 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 $174,800. 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.]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faf77fbbb-1dde-487e-a68d-57da23267360%2F8f5e01d4-fe80-4beb-8fa2-2a25d6cb3dc3%2Fn4txfyl_processed.png&w=3840&q=75)
Transcribed Image Text:A company began 2024 with 28,000 units of inventory
on hand. The cost of each unit was $4.00. During
2024, an additional 48,000 units were purchased at a
single unit cost, and 38,000 units remained on hand at
the end of 2024 (38,000 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 $174,800. 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.]
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