Asked by Eunice Monpremier on May 04, 2024
Verified
What amount will be reported in cost of goods sold for the 11 units that were sold?
A) $2,239.
B) $2,255.
C) $2,200.
D) $2,228.
E) $2,215.
LIFO Perpetual
An inventory valuation method where the last items added to inventory are assumed to be the first sold, updated continuously throughout the accounting period.
Cost of Goods Sold
The direct costs attributable to the production of goods sold by a company.
- Execute different inventory pricing strategies (First In, First Out; Last In, First Out; Specific Identification; Weighted Average) in assorted scenarios.
Verified Answer
SM
Semsudin MuminovicMay 10, 2024
Final Answer :
B
Explanation :
Using LIFO, we assume that the last units purchased are the first ones sold. Therefore, the cost of goods sold for the 11 units sold on October 4 would be calculated as follows:
11 units x $205 = $2,255.
11 units x $205 = $2,255.
Learning Objectives
- Execute different inventory pricing strategies (First In, First Out; Last In, First Out; Specific Identification; Weighted Average) in assorted scenarios.
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