Use the following information for questions
Chase Co.uses the perpetual inventory method.The inventory records for Chase reflected the following

-Assuming Chase uses a LIFO cost flow method,the amount of cost of goods sold for the sales transaction on January 18 is (round the final result to the nearest whole dollar):
A)$1,150.
B)$1,050.
C)$1,070.
D)$1,130.

Question

Use the following information for questions
Chase Co.uses the perpetual inventory method.The inventory records for Chase reflected the following
 
-Assuming Chase uses a LIFO cost flow method,the amount of cost of goods sold for the sales transaction on January 18 is (round the final result to the nearest whole dollar):
A)$1,150. 
B)$1,050. 
C)$1,070. 
D)$1,130.

Quizplus · Accepted Answer

LIFO method assumes that the last units purchased are sold first. Therefore, the cost of goods sold for the sales transaction on January 18 is calculated as follows:

- 5 units from the purchase on January 3: ($100 + $15) x 5 = $575
- 3 units from the purchase on January 8: ($110 + $16.50) x 3 = $373.50
- 2 units from the purchase on January 15: ($120 + $18) x 2 = $276

Total cost of goods sold = $1,070.

Use the Following Information for Questions