Final answer:
The student's question requires inventory details for a LIFO costing calculation, which are not provided. Instead, we calculated the firm's accounting profit using the given data, which is $50,000.
Step-by-step explanation:
The question is asking to calculate the cost of goods sold (COGS) using the Last-In, First-Out (LIFO) inventory costing method. Unfortunately, the information provided about the sales revenue, costs of labor, capital, and materials, is not directly related to the calculation of COGS using LIFO. To calculate COGS using the LIFO method, we need details about the inventory purchase dates, costs, and sales and inventory levels on specific dates, such as May 20. If we had the inventory information, we would use the costs of the most recent inventory acquired to determine the COGS for the sale on May 20.
Without this specific inventory data, we cannot accurately calculate COGS; instead, we can address a different question using the given data:
To calculate a firm's accounting profit, we deduct the total expenses from the total sales revenue. With the provided data, the firm's accounting profit is calculated as follows:
Sales Revenue: $1,000,000
Labor Costs: $600,000
Capital Costs: $150,000
Materials Costs: $200,000
Total Costs: $600,000 + $150,000 + $200,000 = $950,000
Accounting Profit = Sales Revenue - Total Costs = $1,000,000 - $950,000 = $50,000
The accounting profit for the firm last year was $50,000.