Question

King Costume started the month with 8 masks in its beginning inventory that cost $10 each. During the month, King Costume purchased 40 additional masks for $12 each. At the end of the month, King counted its inventory and found that 5 masks remained unsold. If King Costume uses LIFO periodic, its Cost of Goods Sold for the month is:

Answer 1

Answer:

Cost of goods sold= $510

Explanation:

Giving the following information:

King Costume started the month with 8 masks in its beginning inventory that cost $10 each. During the month, King Costume purchased 40 additional masks for $12 each. At the end of the month, King counted its inventory and found that 5 masks remained unsold.

Units sold= 8 + 40 - 5= 43

LIFO (last-in, first-out)

Cost of goods sold= 40*12 + 3*10= $510