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guapka [62]
3 years ago
9

West and Company uses the LIFO method to calculate inventory values. Their beginning inventory consisted of 200 units at a cost

of $9.00 each. Purchases include 300 units at $10.00 each on February 18; 400 units at $11.00 each on July 16; and 100 units at $12.00 each on December 5. If there were 300 units remaining in imventory at the end of the year, what was the cost of goods sold?
Mathematics
1 answer:
nirvana33 [79]3 years ago
7 0
The total inventory is 200 + 300 + 400 + 100 = 1000. If 300 units remained, the we calculate the cost of the 700 sold via LIFO. These 700 units include the 100 units at $12.00, the 400 units at $11.00, and 200 units at $10.00 (out of the 300 purchased). This is a total cost of 100*12 + 400*11 + 200*10 = 1200 + 4400 + 2000 = $7600.
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Method 1
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