Carryable CDs has the following inventory data: $$\begin{array} { r l r }
\text { Nov. } 1 & \text { Inventory } & 30 \text { units } @ \$ 6.00 \text { each } \
8 & \text { Purchase } & 120 \text { units } @ \$ 6.45 \text { each } \
17 & \text { Purchase } & 60 \text { units } @ \$ 6.30 \text { each } \
25 & \text { Purchase } & 90 \text { units } @ \$ 6.60 \text { each }
\end{array}$$ 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)$1269
C)$632
D)$1295

Question

Carryable CDs has the following inventory data: $$\begin{array} { r l r } 
\text { Nov. } 1 & \text { Inventory } & 30 \text { units } @ \$ 6.00 \text { each } \
8 & \text { Purchase } & 120 \text { units } @ \$ 6.45 \text { each } \
17 & \text { Purchase } & 60 \text { units } @ \$ 6.30 \text { each } \
25 & \text { Purchase } & 90 \text { units } @ \$ 6.60 \text { each }
\end{array}$$ 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)$1269
C)$632
D)$1295

Quizplus · Accepted Answer

Under LIFO, the last items purchased are the first to be sold. The cost of goods sold would include the most recent purchases: 90 units @ $6.60 and 10 units @ $6.30, totaling $1295.

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