问题
单项选择题
A firm ended the last period with inventory of $ 4.0 million and a last in, first out (LIFO) reserve of $175000. During the year, it made purchases of $ 2. 0 million and reported sales of $ 5.5 million with a gross margin of 0.32. At the end of the year, it reported a LIFO reserve of $ 75000. What is the value of the firm’ s cost of goods sold (COGS) on a first in, first out (FIFO) basis
A．
| A. $ 384000O. |
B．
| B. $ 3740000. |
C．
| C. $ 3640000. |
答案
参考答案：A
解析：With sales of $ 5.5 million and a gross margin of 0.32, the COGS (on a LIFO basis) is $ 3.74 million. In order to convert this to a FIFO approximation, we need to subtract the change in LIFO reserve during the year: $3740000-($75000-$175000)= $ 3840000.