Okay, starting to understand FIFO, need to understand LIFO. I have a problem which states this:
Began 2008 with 1,200 toys which cost $9 each. During year made following purchases:
Date Units Purchased Cost per Unit Total cost
3/18 500 $9.50 4,750
6/4 700 10.00 7,000
8/28 400 10.50 4,200
11/13 900 11.50 10,350
TOTAL 2500 26,300
Year end inventory is 800 units on Dec 31, 08. WHat is cost of goods sold?
I know I add 1200 + 2500 =3700. I subtract 3700-800=2900. I'm confused, 2700 is more than all my units purchsed. Do I use all my total cost for each units purchased and add the extra 400 onto 3/18 at 500/units purchased? I'm confused can I get some help Please?