Question

A company uses a periodic inventory system. On November 1, the company had 8 items of beginning inventory with a cost of $22 per unit. On November 2, the company purchased 10 units at $21 per unit. On November 6, the company purchased 5 units at $25 per unit. Then, on November 8, the company sold 18 units. Using LIFO, the cost of the 18 units sold is _____.

Answer 1

Answer:

COGS= $401

Explanation:

Giving the following information:

On November 1, the company had 8 items of beginning inventory with a cost of $22 per unit.

On November 2, the company purchased 10 units at $21 per unit.

On November 6, the company purchased 5 units at $25 per unit.

Then, on November 8, the company sold 18 units.

LIFO (last-in, first-out)

COGS= 5*25 + 10*21 + 3*22= $401