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Financial Accounting

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LIFO vs FIFO Cost Flow: Financial Statement Presentation

FINACT-FYVGR$

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

If the company uses the LIFO cost flow assumption under a perpetual system, Cost of Goods Sold is 1,575.

If the company changes to the FIFO cost flow assumption , the Cost of Goods Sold

.