Causwell Company began 2013 with 18,000 units of inventory on hand. The cost of each unit was $5. During 2013 an additional 38,000 units were purchased at a single unit cost, and 28,000 units remained on hand at the end of 2013 (28,000 units therefore were sold during 2013). Causwell uses a periodic inventory system. Cost of goods sold for 2013, applying the average cost method, is $166,600. The company is interested in determining what cost of goods sold would have been if the FIFO or LIFO methods were used.
Required:
1.Determine the cost of goods sold for 2013 using the FIFO method. [Hint: Determine the cost per unit of 2013 purchases.]
FIFO cost of goods sold __________
2.Determine the cost of goods sold for 2013 using the LIFO method.
LIFO cost of goods sold _________