Question

LJUURCES - don 10 LSUS RESOURCE: ct ed out of ag question Lamp Inc. sells lamps. During March 2018, its inventory records for the category "Nightstand Lamps" were as follows: Quantity Price per Lamp Total Beginning Inventory 2,000 lamps $26 = $52,000 March 7 Purchase 1,800 lamps $29 = $52,200 March 11 Sale 2,500 lamps N/A March 17 Purchase 900 lamps $31 = $27,900 March 23 Sale 800 lamps N/A March 28 Purchase 700 lamps $32 = $22,400 Using the information above, periodic LIFO cost of goods sold is: Select one: a. $99,600 b. $98,550 c. $103,400 d. $95,700 Check

Answer 1

Solution:

The answer is a) $ 99,600

Explanation:

1) As per LIFO, Cost of goods sold will be calculated by taking all the recent purchases into consideration rather than beginning inventory.

2) Total Sales = 2500 + 800 = 3300 Units

3) Calculation of cost of goods sold.(Following purchases are taken into consideration for calculation )

Date	Quantity (a)	Price (b)	Total (a*b)
Mar. 28	700	$             32	$     22,400
Mar. 17	900	$             31	$     27,900
Mar. 7	1700	$             29	$     49,300
Total	3300		$     99,600

4) So, Remaining options b,c,d are incorrect.