Reference no: EM131809931

Problem

Cost of Goods Sold, FIFO, and LIFO

Kramer began operations early in 2016 and made the following purchases:

February 5      200        $5
June 10          500        6
October 4       300        7

Kramer used the FIFO method to value its inventory and reported cost of goods sold expense for the year of 54,000.

Required:

Determine the cost of goods sold expense assuming Kramer had used the LIFO method instead of the FIFO method.