Suppose that Dom began a landscaping business in Year 1. In that year, he adopted...
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Accounting
Suppose that Dom began a landscaping business in Year 1. In that year, he adopted the last-in first-out (LIFO) inventory-flow method for his business inventory of shrubbery by using it for the year on his tax return. In Year 1, he purchased the following four batches of shrubs (total cost per batch below).
Shrubs
Purchase Date
Direct Cost
Other Inventoriable Costs
Total Cost
200
July 21
$2,000
$200
$2,200
150
August 15
$2,000
$100
$2,100
100
October 30
$2,200
$400
$2,600
140
November 10
$2,700
$100
$2,800
In Year 1, Dom sold 200 shrubs. In Year 2, Dom purchased three more batches of shrubs at the following total cost per batch below. Just before year end in Year 2, he also sold 50 shrubs:
Shrubs Purchase Date Total Cost 100 Early spring $ 2,400 125 Summer $ 2,500 100 Fall $ 2,600
Fill in the blank: If Dom elects to use the FIFO method in Year 2, the cost of goods sold is $_______. Note: Enter the COGS as a positive (or 0) dollar value.
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