Question

Picture Perfect Frame Shop wants to know the effect of different inventory costing methods on its financial statements. Inventory and purchases data for June follow: EE(Click the icon to view the inventory and purchases data.) If Picture Perfect Frame Shop uses the LIFO method, cost of goods sold will be A. $25,760 B. $27,300 C. $27,560 Data Table D. $27,000 Unit Cost Units Total Cost $ 1 Beginning inventory 2,500 45,000 Jun 18.00 $ 4 Purchase 1,400 18.40 25,760 |(1,500) 9 Sale Print Done

Answer 1

Cost of Goods Sold under lifo = (1400*18.40) + (1500-1400)*18 = 25,760 + 1800 = 27,560 Option C is the answer