Question

Swifty Corporation sells one product and uses a perpetual inventory system. The beginning inventory consisted of 79 units that cost $19 per unit. During the current month, the company purchased 477 units at $19 each. Sales during the month totaled 355 units for $42 each. What is the cost of goods sold using the LIFO method

Answer 1

Answer:

COGS= $6,745

Explanation:

Giving the following information:

Beginning inventory= 79 units at $19

Purchase= 477 units at $19

Sales= 355 units

The units cost the same. In this case, it doesn't matter which method you use, the ending value will be the same.

COGS= 355*19= $6,745