Answer:
D) $115,000
Explanation:
beginning 5,000 at cost of $ 35,000
purchase 12,000 at $9 each = $ 108,000
total units available for sale 17,000
ending <u> (4,000) </u>
sold units: 13,000
Under LIFO we first sale the newest units those are the purchased ones.
we will sale the 12,000 purchased unit --> $108,000
13,000 - 12,000 = 1,000 there is still 1000 more unit to sale oso we take themfrom beginning inventory
and 1000 of the beginning inventory:
35,000 / 5,000 x 1,000 = 7,000
total cogs = 108,000 +7,000 = 115,000
