Lois's Furniture uses a periodic inventory system.Lois sold 60 tables during August.Other data for August includes:
$$\begin{array} { | r | l | l | }
\hline \text { Aug. } 1 & \text { Balance } & 3 @ \$ 15 \
\hline 9 & \text { Purchased } & 12 @ \$ 18 \
\hline 18 & \text { Purchased } & 60 @ \$ 20 \
\hline
\end{array}$$
Cost of Goods Sold under the LIFO method is:

Question

Lois's Furniture uses a periodic inventory system.Lois sold 60 tables during August.Other data for August includes:
$$\begin{array} { | r | l | l | } 
\hline \text { Aug. } 1 & \text { Balance } & 3 @ \$ 15 \
\hline 9 & \text { Purchased } & 12 @ \$ 18 \
\hline 18 & \text { Purchased } & 60 @ \$ 20 \
\hline
\end{array}$$
Cost of Goods Sold under the LIFO method is:

Quizplus · Accepted Answer

The correct answer is A because under the LIFO method, the last items purchased are the first ones sold. Therefore, the cost of goods sold would be the cost of the 60 tables purchased on August 18th, which is $20 per table, for a total of $1,200.

Lois's Furniture Uses a Periodic Inventory System Cost of Goods Sold Under the LIFO Method Is: A)$1,200

Lois's Furniture Uses a Periodic Inventory System Cost of Goods Sold Under the LIFO Method Is:
A)$1,200