contestada

The inventory data for an item for November are:


Nov. 1 Inventory 20 units at $19
4 Sold 10 units
10 Purchased 30 units at $20
17 Sold 20 units
30 Purchased 10 units at $21

Using a perpetual system, what is the cost of the merchandise sold for November if the company uses LIFO?

$610
$600
$590
$580

Respuesta :

ahmedgodtrust

Answer:

USING LIFO METHOD

Nov 1 Opening inventory 20 units@$19 =   380

Nov 4 Sales                       10 units@$19   = (190)    

Nov 10 Purchases              30 units@$20 = 600  

Nov 17 Sales                       20 units@$20 = (400)

Nov 30 Purchases              10 units@$21  = 210

Cost of merchandise sold                             600  

The correct answer is B  

Explanation:

In LIFO method of inventory valuation, most recent stocks are issued first. For instance, sales of 10 units in November 4 will be issued from the November 1 opening inventory and valued at the price of opening inventory.November 17 sales will be issued from November 10 purchases and valued at the price of November 10 purchases.

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