King Costume uses a periodic inventory system.The company started the month with 8 masks in its beginning inventory that cost $10 each.During the month,King Costume purchased 40 additional masks for $12 each.At the end of the month,King counted its inventory and found that 5 masks remained unsold.Using the LIFO method,its cost of goods sold for the month is:
A)$510.
B)$516.
C)$50.
D)$500.

Question

Quizplus · Accepted Answer

Under the LIFO (Last In, First Out) method, the most recently purchased items are sold first. King Costume had 8 masks at $10 each and bought 40 more at $12 each. At the end of the month, 5 masks remained, implying 43 masks were sold. The cost of goods sold includes the 40 masks bought at $12 each ($480) and 3 of the masks from the beginning inventory at $10 each ($30), totaling $510.

King Costume Uses a Periodic Inventory System