Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 63

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.