Question

The January 28, 2017 (fiscal year 2016) financial statements of Caleres, Inc. reported the following information (in thousands). 2016 2015 Cost of sales $1,517,397 $1,529,527 Inventories, net 585,764 546,745 LIFO reserve 4,345 4,094 If Caleres had used the FIFO method of inventory costing, 2016 COGS would have been: A. $1,517,648 thousand B. $1,551,301 thousand C. $1,553,198 thousand D. $1,517,146 thousand E. None of the above

Answer 1

A. $1,517,648 thousand

Step-by-step explanation:

The computation of the cost of goods sold using the FIFO method is shown below:

= Cost of goods sold under LIFO - (Ending LIFO reserves - Beginning LIFO reserves)

= $1,517,397 - ($4,345 - $4,094)

= $1,517,648

We simply applied the above formula so that the cost of goods sold using the FIFO method could come

All other information i.e given is not relevant. Hence, ignored it