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The inventory data for an item for November are: Nov. 1 Inventory 20 units at $19 4 Sale 10 units 10 Purchase 30 units at $20 17 Sale 20 units 30 Purchase 10 units at $21 Using a perpetual system, what is the cost of merchandise sold for November if the company uses LIFO?

Respuesta :

Answer:

$590

Explanation:

Under LIFO Method, the cost of good sold equals to

= Purchase units on Nov 10 × cost per unit + Inventory on Nov 1 × cost per unit

= 20 units × $20 + 10 units × $19

= $400 + $ 190

= $590

Since the firm has sold 20 units on Nov 17, so out of which 20 units sold at a price of $20 and then 10 units was sold on Nov 4 which is to be recorded at $19 from Nov 1 inventory