A company's inventory records report the following in November of the current year: On November 8,it sold 12 units for $54 each.
-Using the LIFO perpetual inventory method,what amount of gross profit was earned from the 12 units sold?
A)$577
B)$260
C)$366
D)$438
E)$388

Question

A company's inventory records report the following in November of the current year:  On November 8,it sold 12 units for $54 each.
-Using the LIFO perpetual inventory method,what amount of gross profit was earned from the 12 units sold?
A)$577 
B)$260 
C)$366 
D)$438 
E)$388

Quizplus · Accepted Answer

Using the LIFO (Last-In, First-Out) perpetual inventory method, the most recent costs are assigned to the cost of goods sold (COGS) first. If 12 units were sold, we calculate the COGS based on the most recent purchases before the sale. Subtracting the COGS from the sales revenue gives us the gross profit. Without specific purchase and sale details, we can't calculate the exact figures, but based on the LIFO method and the options provided, the correct answer is chosen as per the question's instruction.

A Company's Inventory Records Report the Following in November of the Current