To determine cost of goods sold under the FIFO method:

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Under the FIFO (First-In, First-Out) method, the first costs into inventory are the first costs assigned to cost of goods sold. This means that the cost of goods sold is based on the cost of the oldest inventory items, while the ending inventory is based on the cost of the most recent inventory items. Therefore, the cost of goods sold is determined by taking the total cost of the oldest inventory items that were sold during the period.

To Determine Cost of Goods Sold Under the FIFO Method