Gregor Inc. uses the LIFO cost-flow assumption to value inventory. Inventory for Gregor on January 1, 2021 was 100 units at a LIFO cost of $25 per unit. During the first quarter of 2021, 200 units were purchased costing an average of $40 per unit, and sales of 265 units at a retail price of $50 per unit were made.Assuming Gregor does not expect to replace the units of beginning inventory sold, what is the amount of cost of goods sold for the quarter ended March 31, 2021?

Question

Quizplus · Accepted Answer

The Answer of Gregor Inc. uses the LIFO cost-flow assumption to value inventory. Inventory for Gregor on January 1, 2021 was 100 units at a LIFO cost of $25 per unit. During the first quarter of 2021, 200 units were purchased costing an average of $40 per unit, and sales of 265 units at a retail price of $50 per unit were made.Assuming Gregor does not expect to replace the units of beginning inventory sold, what is the amount of cost of goods sold for the quarter ended March 31, 2021?