RJ Corporation has provided the following information about one of their inventory items:

$$\begin{array}{ll}
\begin{array} { ll }
\text { Date } & \text { Transaction } \
1 / 1 & \text { Beginning Inventory } \
6 /6& \text { Purchase } \
9 / 10 & \text { Purchase } \
11/ 15 & \text { Purchase }
\end{array}
\begin{array} { l l}
\text { Number of Units } & \text { Cost per Unit } \
400& \$ 3,200 \
800 & \$ 3,600 \
1,200 & \$ 4,000 \
800 & \$ 4,200
\end{array}
\end{array}$$
During the year,3,000 units were sold. What was cost of goods sold using the LIFO cost flow assumption?
A)$11,680,000
B)$11,590,000
C)$11,480,000
D)$11,550,000

Question

RJ Corporation has provided the following information about one of their inventory items:

$$\begin{array}{ll}
\begin{array} { ll } 
\text { Date } & \text { Transaction } \
1 / 1 & \text { Beginning Inventory } \
6 /6& \text { Purchase } \
9 / 10 & \text { Purchase } \
11/ 15 & \text { Purchase }
\end{array}
\begin{array} { l l} 
\text { Number of Units } & \text { Cost per Unit } \
400& \$ 3,200 \
800 & \$ 3,600 \
1,200 & \$ 4,000 \
800 & \$ 4,200
\end{array}
\end{array}$$
 During the year,3,000 units were sold. What was cost of goods sold using the LIFO cost flow assumption?
A)$11,680,000
B)$11,590,000
C)$11,480,000
D)$11,550,000

Quizplus · Accepted Answer

LIFO (Last-In, First-Out) assumes that the most recently purchased items are the first to be sold. Therefore, the cost of goods sold for the 3,000 units sold would be:800 units @ $4,200 = $3,360,000800 units @ $4,000 = $3,200,0001,200 units @ $3,600 = $4,320,000Total cost of goods sold = $11,590,000

RJ Corporation Has Provided the Following Information About One of Their