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Financial Accounting

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LIFO Cost Flow: Financial Statement Revenue Presentation

FINACT-GGJNBZ

The following transactions are reported for a merchandising company:

Date Transaction Quantity Unit Cost
March 10 Purchase 100 \$10.00
March 15 Purchase 200 \$10.50
March 23 Sale 150 \$ 15.00
March 30 Purchase 100 \$11.00
March 30 Purchase 100 \$11.00

If the company uses the LIFO cost flow assumption in a perpetual system, Cost of Goods Sold is 1,575.
The amount of revenue reported on the Income Statement under the LIFO cost flow assumption

if the company changes to the FIFO cost flow assumption.