Lauer Corporation has provided the following information about one of its laptop computers: During the year,Lauer sold 750 laptop computers.
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What was cost of goods sold using the LIFO cost flow assumption?
A)$725,000.
B)$740,000.
C)$735,000.
D)$720,000.

Question

Lauer Corporation has provided the following information about one of its laptop computers:  During the year,Lauer sold 750 laptop computers.
-
What was cost of goods sold using the LIFO cost flow assumption?
A)$725,000. 
B)$740,000. 
C)$735,000. 
D)$720,000.

Quizplus · Accepted Answer

Using the LIFO cost flow assumption, the cost of goods sold will be based on the cost of the most recently purchased laptop computers. Since Lauer sold 750 laptop computers during the year, the cost of goods sold will be calculated as follows:
750 laptops x $986 per laptop = $739,500
Therefore, the answer is B) $740,000 (rounded to the nearest thousand).

Lauer Corporation Has Provided the Following Information About One of Its