Mansfield Company has a periodic inventory system and uses the LIFO method to assign costs to inventory and cost of goods sold.Consider the following information: What amounts would be reported as the cost of goods sold and ending inventory balances for the period?
A)Cost of goods sold $625;Ending inventory $175
B)Cost of goods sold $755;Ending inventory $225
C)Cost of goods sold $550;Ending inventory $250
D)Cost of goods sold $600;Ending inventory $200

Question

Mansfield Company has a periodic inventory system and uses the LIFO method to assign costs to inventory and cost of goods sold.Consider the following information:  What amounts would be reported as the cost of goods sold and ending inventory balances for the period?
A)Cost of goods sold $625;Ending inventory $175 
B)Cost of goods sold $755;Ending inventory $225 
C)Cost of goods sold $550;Ending inventory $250 
D)Cost of goods sold $600;Ending inventory $200

Quizplus · Accepted Answer

Ending inventory (in units)= Beginning inventory + Purchases − Units sold
= 100 + 75 − 125 = 50
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Mansfield Company Has a Periodic Inventory System and Uses the LIFO