Required information

Exercise $8-18($Algo$)$ FIFO, LIFO, and average cost methods $[$LO$8-1,8-4]$

$[$The following information applies to the questions displayed below.$]$

A company began $2024$ with $15,000$ units of inventory on hand. The cost of each unit was $$5\mathrm{.}00.$ During $2024,$ an additional $35,000$ units were purchased at a single unit cost, and $25\mathrm{.}000$ units remained on hand at the end of $2024(25,000$ units therefore were sold during $2024).$ The company uses a periodic inventory system. Cost of goods sold for $2024,$ applying the average cost method, is $$142,500.$ The company is interested in determining what cost of goods sold would have been if the FIFO or LIFO methods were used.

Exercise $8-18($Algo$)$ Part $1$

Required:

Determine the cost of goods sold for $2024$ using the FIFO method. $[$Hint: Determine the cost per unit of $2024$ purchases.$]$

Note: Do not round intermediate calculations.

Answer is complete but not entirely correct.

FIFO cost of goods sold

$ $250,000$