Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the LIFO inventory cost method.

A) $136
B) $144
C) $180
D) $120

LIFO Inventory

An inventory valuation method (Last In, First Out) where the most recently produced or acquired items are recorded as sold first.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including direct materials and labor costs.

Perpetual Inventory System

An inventory management system where updates to inventory records are made immediately following each transaction, giving a continuous, real-time account of stock levels.