Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

Exercise 38

Lifetime Sports, Inc., uses the LIFO cost-flow assumption to value inventory. It began the current year with 1,000 units of inventory carried at LIFO cost of $50 per unit. During the first quarter, it purchased 5,000 units at an average cost of $80 per unit and sold 5,300 units at $100 per unit.
The company does not expect to replace the units of beginning inventory sold; it plans to reduce inventory by year-end to 500 units. What amount of cost of goods sold is to be recorded for the quarter ended March 31
a. $415.000.
b. $424,000.
c. $424,600.
d. $434,600.