Saunders Corp., which accounts for inventory using the LIFO method, had 2,000 units in beginning inventory at a cost of $40 and had purchased 500 more for $43.During the quarter, 1,300 units were sold.It is expected that the ending inventory at year end will be 1,800 units as Saunders anticipates purchasing additional units for $45.The debit to cost of goods sold for the quarter would be:
A)$53,500
B)$56,500
C)$55,000
D)$58,500

Question

Saunders Corp., which accounts for inventory using the LIFO method, had 2,000 units in beginning inventory at a cost of $40 and had purchased 500 more for $43.During the quarter, 1,300 units were sold.It is expected that the ending inventory at year end will be 1,800 units as Saunders anticipates purchasing additional units for $45.The debit to cost of goods sold for the quarter would be:
A)​$53,500
B)​$56,500
C)​$55,000
D)​$58,500

Quizplus · Accepted Answer

The Answer is A