Carryable CDs has the following inventory data: $\begin{array}{rll}
\text { Nov. } 1 & \text { Inventory } & 30 \text { units } @ \$ 6.00 \text { each } \
8 & \text { Purchase } & 120 \text { units } @ \$ 6.45 \text { each } \
17 & \text { Purchase } & 60 \text { units } @ \$ 6.30 \text { each } \
25 & \text { Purchase } & 90 \text { units } @ \$ 6.60 \text { each }
\end{array}$ A physical count of merchandise inventory on November 30 reveals that there are 100 units on hand. Cost of goods sold under LIFO is
A)$657
B)$1,269
C)$632
D)$1,295

Question

Quizplus · Accepted Answer

Under LIFO, the last items purchased are the first to be sold. The 100 units on hand mean 200 units were sold. The cost of goods sold is calculated using the most recent purchases: 90 units @ $6.60, 60 units @ $6.30, and 50 units @ $6.45, totaling $1,295.

Carryable CDs Has the Following Inventory Data A Physical Count of Merchandise Inventory on November 30 Reveals