medium · Financial Accounting assets

A firm using the LIFO inventory method reports Ending Inventory of 200,000 and a LIFO Reserve of50,000 at the start of the year. By year-end, Ending Inventory is 240,000 and the LIFO Reserve is75,000.

If LIFO Cost of Goods Sold (COGS) was $800,000, what would the FIFO COGS be?

  1. $800,000
  2. $775,000
  3. $725,000
  4. $825,000

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