The Gift Horse began 2021 with 60,000 units of inventory that cost $36,000. During 2021, The Gift Horse purchased merchandise on account for $352,500: (Click the icon to view the purchases.) Cash payments on account totaled $326,000 during the year (ignore purchase discounts). The Gift Horse's sales during 2021 consisted of 520,000 units of inventory for $660,000, all on account. The company uses the FIFO inventory method. Cash collections from customers were $630,000. Operating expenses totaled $240,500, of which The Gift Horse paid $211,000 in cash. The Gift Horse credited Accrued Liabilities for the remainder. At December 31, The Gift Horse accrued income tax expense at the rate of 35% of income before tax Read the requirements Requirement 1. Show how The Gift Horse would compute cost of goods sold for 2021. Units sold from beginning inventory Units sold from Purchase 1 Units Units sold from Purchase 2 Units sold from Purchase 3 520,000 Cost of goods sold k my instructor Total Cost Clear all Check answer