Question:Causwell Company began 2016 with 30,000 units ofinventory on hand. The cost of each unit was $5.00.During 2016, an additional 50,000 units were purchased ata single unit cost, and 40,000 units remained on hand atthe end of 2016 (40,000 units therefore were sold during2016).Causwell uses a periodic inventory system. Cost of goodssold for 2016, applying the average cost method, is$224,000. The company is interested in determining whatcost of goods sold would have been, if the FIFO or LIFOmethods were used.1. Determine the cost of goods sold for 2016 using theFIFO method. (Hint: Determine the cost per unit of 2016purchases.)2. Determine the cost of goods sold for 2016 using theLIFO method. (Do not round intermediate calculations.)

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Answered: Question: Causwell Company began 2016…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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