The MegaMart Company began $2024$ with inventory of $19,000$ units at a cost of $$6$ per unit. During $2024,59,000$ units were purchased for $$7\mathrm{.}20$ each. Sales for the year totaled $67,500$ units leaving $10,500$ units on hand at the end of $2024.$ MegaMart uses a periodic inventory system and the LIFO inventory cost method.

Required:

Calculate cost of goods sold for $2024.$

Calculate the effect of the use of LIFO on Income.

Answer rating: 100% (QA)

To calculate the cost of goods sold COGS for 2024 we need to determine the number of units sold and their corresponding costs using the LIFO Last In F... View the full answer