Corporation A uses the FIFO inventory method and had 50,000 units in inventory at the beginning of
Question:
Corporation A uses the FIFO inventory method and had 50,000 units in inventory at the beginning of the year at a FIFO cost of $8. No purchases were made during the year and any market declines were not expected to be temporary. The quarterly sales and end-of-quarter realizable values for the year were are follows:
Qtr Sales in Units End-of-Qtr Units End-of-quarter Realizable Value
1 10,000 40,000 $8.15
2 6,000 34,000 7.90
3 12,000 22,000 8.10
4 7,500 14,500 7.95
TOTAL 35,400
What is the amount of cost of goods sold that would be reported for the first quarter of the year for interim reporting?
What is the amount of cost of goods sold that would be reported for the second quarter of the year for interim reporting?
What is the amount of cost of goods sold that would be reported for the third quarter of the year for interim reporting?
What is the amount of cost of goods sold that would be reported for the fourth quarter of the year for interim reporting?