Tap Manufacturing Company records sales of $1,000,000 and cost of sales of $550,000 during the first quarter of 2011. Tap uses the LIFO inventory method, and its inventories are computed as follows:
Beginning LIFO inventory at January 1 . 10,000 units at . $5 $50,000
Ending LIFO inventory at March 31 .... 6,000 units at .. $5 $30,000
Before year-end, Tap expects to replace the 4,000 units liquidated in the first quarter. The current cost of the inventory units is $7each.
REQUIRED: At what amount will Tap report cost of sales in its first-quarter interim report?