The Mick Company reported a LIFO cost of goods sold for the year of $100,000.The LIFO reserve decreased by $30,000 for the year.An estimate of the cost of goods sold under FIFO is

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Quizplus · Accepted Answer

To estimate the cost of goods sold under FIFO, we need to add back the decrease in LIFO reserve to the LIFO cost of goods sold. Therefore, FIFO cost of goods sold = LIFO cost of goods sold + decrease in LIFO reserve = $100,000 + $30,000 = $130,000.

The Mick Company Reported a LIFO Cost of Goods Sold