Gordon sues stewart for a breach of contract. the jury agrees that stewart breached the contract, but they find that gordon has
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Answer:
B) $900
Explanation:
Given: Purchased 300 units of inventory in January at $5 each.
Purchased 500 units of inventory in August at $4 each.
Purchased 200 units of inventory in November at $6 each.
The company sold 150 units during the year.
As given company used periodic inventory system and the LIFO inventory costing method.
Periodic inventory system are the system that determine inventory at the end of each accounting period.
Last-in-first-out (LIFO) is inventory valuation method that assume inventory which are placed last, will be the first one to be sold out.
Now, computing cost of goods sold as per LIFO method.
We know sold unit is 150 unit
∴ Last inventory which was placed is in November, that is at $6 per unit.
Cost of goods sold=
⇒ Cost of goods sold=
∴ Cost of goods sold=
Hence, the cost of goods sold as per LIFO inventory costing method is $900.