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Assume that Fey Company reports the following initial balance and subsequent purchase of inventory. Inventory balance at beginning of year 1,200 units @ $60 each $ 72,000 Inventory purchased during the year 1,800 units @ $90 each 162,000 Cost of goods available for sale during the year 3,000 units $234,000 Assume that 1,900 units are sold during the year. What amount is reported for cost of goods sold using the LIFO method?

Respuesta :

Answer: 15,000

Explanation:

15000 amount is reported for cost of goods sold using the LIFO method.

What is LIFO method?

LIFO is a method used to account for inventory. Under LIFO, the cost of the most recent products purchased are the first to be expensed. LIFO is used only in the United States and governed by the generally accepted accounting principles (GAAP).

The LIFO method is used in the Cost of Goods Sold calculation when the costs of producing a product or acquiring inventory has been increasing. This may be due to inflation.

LIFO is the opposite of FIFO. Instead of the oldest inventory being considered as sold first, the newest product is sold first. While the factory analogy works for the FIFO, consider a bakery.

Learn more about LIFO, refer:

https://brainly.com/question/9466727

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