Question

Safe Search THIS PAGE IS SAFE Hotel Del Live Web Cam C... - WVU G Google - CareLink JJJ ACCESS SHARE VIA VAULT FACEBOOK Fox News - Breaking News ... QUESTION 5 Fischer Inc. had the following inventory in fiscal 2017. The company uses the LIFO method of accounting for inventory. Beginning Inventory, January 1, 2017: 130 units @ $10.00 Purchase 200 units @ $12.00 Purchase 50 units @ $9.00 Purchase 110 units @ $10.50 Ending Inventory, December 31, 2017: 120 units The company's cost of goods sold for fiscal 2017 is: O 1.84.060 b.$3,865 C. $5,305 O d. 54,105

Answer 1

Option D is correct i.e. $4,105

Reason:-

As per LIFO, material which comes later gets in process first. So the balance raw material units must be from opening balance.

Cost of goods sold :-

= (110 x 10.50) + (50 x 9) + (200 x 12) + (10 x 10)

= 1,155 + 450 + 2,400 + 100

= $4,105