Determine the cost of goods sold figure to be reported

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Question - The Quiqqley Company is started in Year One and buys 400 pieces of inventory for $4 each on June 1. The company sells 300 of these units on September 1 for $20 each. The company buys another 400 units for $7 each on November 1 and finishes Year One with 500 units in stock.

In Year Two, on February 1, the company sells 300 units for $20 each. On July 1, Year Two, the company buys 200 more units for $9 each. On August 1, Year Two, the company sells 100 units for $25 each. Finally, on December 1, Year Two, the company buys another 100 units for $10 each.

Required -

a. If the company uses a perpetual FIFO system, determine the cost of goods sold figure to be reported for Year Two?

b. If the company uses a perpetual LIFO system, determine the cost of goods sold figure to be reported for Year Two?

Reference no: EM133109288

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