
:-
The first thing you should do when you receive a job application is read the entire document before you begin
completing it.
Given: Beginning inventory 360 units @ $65 each
Purchase:
1. 540 units @ $68 each
2. 270 units @ $70 each
Sales: 900 units
To calculate: cost of goods sold as per LIFO method (Last In First Out).
LIFO = stock coming in last will go out first.
Solution:- Cost of goods sold is calculated as follows:
270 units @ $70 each = 270*70 = $18900
540 units @ $68 each = 540*68 = $36720
900 - (270+540) = 90 units
remaining 90 units will be sold from inventory at the beginning
90 units @ $65 each = 90*65 = $5850
So, total cost of goods sold = $ (18900+36720+5850) = $61470.
The profit margin is 35 percent when the net sales were $17,500 and the net income was $6,125.
The profit margin is calculated by dividing net income by net sales.
Therefore, Profit margin = 
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