Duffy Company's first year in operation was 2013. For 2013, its cost of goods sold using FIFO was $60,000, and its ending inventory was $14,600. If Duffy had used the LIFO cost flow method, its ending inventory would have been $14,000.
Required:
a) What would the cost of goods sold have been with LIFO?
b) Based on this information, was 2013 a period of rising prices or falling prices?

Question

Quizplus · Accepted Answer

The Answer of Duffy Company's first year in operation was 2013. For 2013, its cost of goods sold using FIFO was $60,000, and its ending inventory was $14,600. If Duffy had used the LIFO cost flow method, its ending inventory would have been $14,000.
Required:
a) What would the cost of goods sold have been with LIFO?
b) Based on this information, was 2013 a period of rising prices or falling prices?

Duffy Company's First Year in Operation Was 2013