Starlight Company has inventory of 8 units at a cost of $200 each on October 1.On October 2,it purchased 20 units at $205 each.11 units are sold on October 4.Using the perpetual LIFO inventory method,what amount will be reported in cost of goods sold for the 11 units that were sold?
A)$2,239.
B)$2,255.
C)$2,200.
D)$2,228.
E)$2,215.

Question

Quizplus · Accepted Answer

Under the perpetual LIFO method, the last items purchased are the first to be sold. Therefore, the cost of goods sold for the 11 units sold on October 4 would be calculated using the most recent purchase first: 11 units x $205 = $2,255.

Starlight Company Has Inventory of 8 Units at a Cost