Answer:
The cost of merchandise sold for the sale of May 20 using the LIFO Inventory cost method is a. $108.
Explanation:
LIFO (Last in First Out) assumes that the last goods purchased are the first ones to be issued to the final customer or requisitioning department.
Calculation of the cost of merchandise sold for the sale of May 20 using the LIFO :
Cost of merchandise sold = 4 units × $27
= $108
Conclusion :
The cost of merchandise sold for the sale of May 20 using the LIFO Inventory cost method is a. $108.