FIFO: Under this inventory method, the units that are purchased first, are sold first. Thus, it starts from the selling of the beginning inventory, followed by the units purchased in a chronological order of their purchases took place during a particular period. LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory. To Calculate: the cost of goods sold for the year ended August 31, 2015 assuming that Company W used FIFO instead of LIFO.

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Chapter 8, Problem 8.11BE

To determine

FIFO: Under this inventory method, the units that are purchased first, are sold first. Thus, it starts from the selling of the beginning inventory, followed by the units purchased in a chronological order of their purchases took place during a particular period.

LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

To Calculate: the cost of goods sold for the year ended August 31, 2015 assuming that Company W used FIFO instead of LIFO.

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