Asked by Ciera Guthrie on Jul 27, 2024
Verified
Use the information in the table to answer this question. If Addison uses LIFO, the September 17 cost of goods sold would be:
A) $400
B) $450
C) $500
D) $600
Cost Of Goods Sold
Directly related production costs for goods sold by a company, involving materials and labor.
LIFO
"Last In, First Out," an inventory valuation method where the most recently acquired items are sold or used first.
- Acquire knowledge about the principles underlying the methods used for inventory costing, namely FIFO, LIFO, average cost, and specific identification.
- Formulate the cost of goods sold using a range of inventory techniques.
Verified Answer
MS
monika sharmaJul 28, 2024
Final Answer :
C
Explanation :
Under the Last-In, First-Out (LIFO) method, the most recently purchased items are sold first. Therefore, the cost of goods sold on September 17 would include the most recent purchases prior to that date. Without the specific table data, the general approach is to sum the costs of the most recent purchases until reaching the quantity sold on September 17. Based on the options provided and assuming the LIFO method, the correct answer is $500, indicating that the most recent purchases up to the quantity sold sum up to this amount.
Learning Objectives
- Acquire knowledge about the principles underlying the methods used for inventory costing, namely FIFO, LIFO, average cost, and specific identification.
- Formulate the cost of goods sold using a range of inventory techniques.
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