XYZ Ltd. had the following information for the year 2022:

• Sales revenue: $500,000
• Beginning inventory: $20,000
• Ending inventory: $15,000
• Purchases: $80,000
• Freight-in: $5,000
• Operating expenses: $150,000
• Income tax rate: 30%
• Gross profit margin: 40%

Using the perpetual inventory system and the first-in, first-out (FIFO) cost method, calculate the cost of goods sold for the year 2022.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Using the FIFO cost method we assume th... View the full answer