Exericse 6-3
Calculate the cost of goods sold using the FIFO periodic inventory method assuming that two of the three players were sold by the end of December, Kiyak Electronics’ year-end.
Cost of goods sold $
If Kiyak Electronics used the specific identification method instead of the FIFO method, how might it alter its earnings by “selectively choosing” which particular players to sell to the two customers? What would Kiyak’s cost of goods sold be if the company wished to minimize earnings? Maximize earnings?
Cost of goods sold would be $ ______ if it wished to minimise the earnings.
Cost of goods sold would be $ ______ if it wished to maximise the earnings.
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