Stallworth Corp. Stallworth Corp.uses a periodic inventory system.The following information is available for the month of November:

-Refer to the information provided for Stallworth Corp.If the company uses the LIFO inventory costing method,the cost of goods sold for November would be:

Question

Stallworth Corp. Stallworth Corp.uses a periodic inventory system.The following information is available for the month of November:

-Refer to the information provided for Stallworth Corp.If the company uses the LIFO inventory costing method,the cost of goods sold for November would be:

Quizplus · Accepted Answer

Using the LIFO inventory costing method, the cost of goods sold would be calculated by taking the cost of the most recent inventory purchases and working backwards until all units sold have been costed. In November, Stallworth Corp. sold a total of 90 units, which includes 55 units from the November 13 purchase and 35 units from the November 22 purchase. Since the LIFO method assumes that the most recent inventory purchases are sold first, we would start by costing the 35 units from November 22 at $34.50 per unit. This gives a total cost of $1,207.50. We would then cost the remaining 55 units from November 13 at $31 per unit, which gives a total cost of $1,705. Adding these two amounts together gives a total cost of goods sold of $2,121.50, which is option D.