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Phantasy [73]
3 years ago
9

Starlight Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, it purchased 20 units at $205 each

. 11 units are sold on October 4. Using the LIFO perpetual inventory method, what amount will be reported in cost of goods sold for the 11 units that were sold?
Business
1 answer:
Aliun [14]3 years ago
6 0

Answer:

$2,255

Explanation:

The computation of the cost of good sold using the LIFO method is shown below:

Data given in the question

On October 1 = 8 units at $200 each

On October 2 = 20 units at $205 each

And, 11 units are sold on October 4

So using the LIFO method, the cost of goods sold for 11 units is

= Number of units sold × price of each units

= 11 units × $205

= $2,255

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