A company's inventory records report the following in November of the current year:...
Question:
A company's inventory records report the following in November of the current year:
| Beginning | November 1 | 5 units @ $20 |
| Purchase | November 2 | 10 units @ $22 |
| Purchase | November 12 | 6 units @ $25 |
On November 8, it sold 12 units for $54 each. Using the LIFO perpetual inventory method, what was the amount recorded in the cost of goods sold account for the 12 units sold?
a. $254
b. $260
c. $282
d. $188
e. $210
Last-in First Out (LIFO):
An organization will place an order for goods that have been on hand for a shorter period, according to the LIFO inventory valuation. In other words, it will try to sell the newest items in its inventory.
Answer and Explanation: 1
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View this answerThe correct option is (b)
Calculation of cost of goods sold for the 12 units:
The LIFO suggested selling the lot which is purchased last, so the...
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Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average
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Chapter 6 / Lesson 11
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Inventory valuation methods are ways that companies place a monetary value on the items they have in their inventory. Discover different inventory valuation methods, including specific identification, First-In-First-Out (FIFO), Last-In-First-Out (LIFO), and weighted average.
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