About 2008 Level I FSA book page 340, problem 4, question C, i: in the answer to question C i, in Appendix A, it lists the COGS of Zenab on FIFO basis is $59,800. I just don’t understand how to come to this number. Can any one pls enlighten me? I’m kind of stucked on this for a few days now. Thanks a ton!
catinsun, you’ll usually get better- and more timely responses if you post the entire actual question. Many of us don’t have access to the current LI curriculum and others wouldn’t bother looking it up anyway… So go ahead and post the complete question: Help me, help you Then again, you should be able to get away with COGS_FIFO = COGS_LIFO - delta(LIFO Reserve) = COGS_FIFO = COGS_LIFO - (LIFO Reserve_ending - LIFO Reserve_beginning)
This is a peculiar problem in the curriculum which has a 70% FIFO, 30%LIFO kind of scenario, and here they are converting the whole to a FIFO I believe. There was an earlier post with this same question from “gdiddy” and some resolution there I believe – on the AnalystForum. CP