Question

Question 17

Classic Floors has the following inventory data:

July 1                    Beginning inventory                                                          30 units at $6.00

      5                    Purchases                                                                            120 units at $6.60

     14                   Sale                                                                                       80 units

     21                   Purchases                                                                            60 units at $7.20

     30                   Sale                                                                                       56 units

Assuming that a perpetual inventory system is used, what is the cost of goods sold on a LIFO basis for July?

A. $696.00

B. $931.20

C. $1,404.00

  

Answer 1

Answer: Option ( B ) $931.20

Perpetual LIFO Goods Purchased Cost of Goods sold Units Unit Cost Total Cost Units Unit Cost Total Cost Date Jul-01 Beginning Inventory Jul-05 Purchases 120 6.60 792 120 Jul-14 Sales 806.60528.00 80 528.00 Inventory Balance Units Unit Cost Total Cost 30 6.00 180.00 30 6.00 180.00 6.60 792.00 150 972.00 6.00 180.00 6.60 264.00 444.00 6.00 180.00 6.60 264.00 7.20 432.00 876.001 6.00 180.00 40 6.60 264.00 4 7.20 28.80 74 472.80 74 472.80 Jul-21 Purchases 60 7.20 432 Jul-30 Sales 56 7.20 403.20 56 136 403.20 931.20 Total