Apple-A-Day Company has the following inventory data: $$\begin{array} { r l r r }
\text { July } 1 & \text { Beginning inventory } & 40 \text { units at } \$ 20 & \$ 800 \
7 & \text { Purchases } & 140 \text { units at } \$ 21 & 2,940 \
22 & \text { Purchases } & 20 \text { units at } \$ 22 & { 440 }\&&& { \$ 4,180 }
\end{array}$$ A physical count of merchandise inventory on July 30 reveals that there are 50 units on hand. Using the LIFO inventory method, the amount allocated to cost of goods sold for July is
A)$3,170.
B)$3,080.
C)$3,110.
D)$3,010.

Question

Apple-A-Day Company has the following inventory data: $$\begin{array} { r l r r } 
\text { July } 1 & \text { Beginning inventory } & 40 \text { units at } \$ 20 & \$ 800 \
7 & \text { Purchases } & 140 \text { units at } \$ 21 & 2,940 \
22 & \text { Purchases } & 20 \text { units at } \$ 22 & { 440 }\&&& { \$ 4,180 }
\end{array}$$ A physical count of merchandise inventory on July 30 reveals that there are 50 units on hand. Using the LIFO inventory method, the amount allocated to cost of goods sold for July is
A)$3,170.
B)$3,080.
C)$3,110.
D)$3,010.

Quizplus · Accepted Answer

Under LIFO, the most recent purchases are assumed to be sold first. Therefore, the cost of goods sold for July is:20 units at $22 = $44030 units at $21 = $630Total cost of goods sold = $440 + $630 = $1,070

Apple-A-Day Company Has the Following Inventory Data A Physical Count of Merchandise Inventory on July 30 Reveals