Question

Lauer Corporation uses the periodic inventory system and has provided the following information about one of its laptop computers: Date Transaction Number of Units Cost per Unit 1/1 100 $ 800 5/5 Purchase 200 $ 900 8/10 Purchase 300 $ 1,000 10/15 Purchase 200 $ 1,100 During the year, Lauer sold 750 laptop computers. What was cost of goods sold using the LIFO cost flow assumption

Answer 1

Answer:

$740,000

Explanation:

LIFO assumes that the recent goods bought will be sold first. The Cost of Goods Sold is then calculated on the cost of the recent goods bought.

Cost of Goods Sold = 200 x $1,100 + 300 x $1,000 + 200 x $900 + 50 x $800

                                  = $740,000

Therefore,

Cost of goods sold using the LIFO is $740,000.