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Question - Reuschel Co. began 2020 with inventory of 20,000 units at cost of $10 per unit. During the year an additional 60,000 units were purchased at a single unit cost. Reuschel sold 50,000 units during 2020. Reuschel uses a periodic inventory system. Cost of goods sold for 2020, applying the average cost method is $575,000. The company is interested in determining what cost of goods sold and ending inventory would have been if the FIFO or LIFO methods were used.
REQUIRED -
1. ?Determine the cost of goods sold and ending inventory using the FIFO method.
2. Determine the cost of goods sold and ending inventory using the LIFO method.
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