Question

Assume Bargain.com began April with 10 units of inventory that cost a total of $150. During April, Bargain.com purchased and sold goods as follows: Apr. 8 Purchase 30 units @ $16 14 Sale 25 units @ $32 22 Purchase 20 units @ $18 27 Sale 30 units @ $32 Suppose Bargain.com used the LIFO inventory costing method and the periodic inventory system. Using the information above, determine Bargain.com's cost of goods sold at the end of the month. O A. $915 B. $75 OC. $900 OD. $90

Answer 1

Answer

• Both questions are the same.
• Correct Answer = Option ‘A’ $ 915 is the Cost of Goods Sold

LIFO	Cost of Goods available for sale			Cost of Goods Sold
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS
Beginning Inventory	10	$                15.00	$                            150.00	5 [55 – 20 – 30]	$               15.00	$                       75.00
Purchases:
08-Apr	30	$                16.00	$                            480.00	30	$               16.00	$                     480.00
22-Apr	20	$                18.00	$                            360.00	20	$               18.00	$                     360.00
TOTAL	60		$                            990.00	55		$                     915.00