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A company using LIFO reports the following:
Cost of goods sold was $27,000.
Beginning inventory was $6,500, and ending inventory was $6,200.
The beginning LIFO reserve was $ 1,200.
The ending LIFO reserve was $1,400.
The best estimate of the company’s cost of goods sold on a FIFO basis would be:

A $26,800.

COGS FIFO = COGS LIFO - (ending LIFO reserve - beginning LIFO reserve)
COGS FIFO = 27,000 - (1,400 - 1,200) = $26,800.