Adam Inc.uses a perpetual inventory system and has the following data for January:
$$\begin{array} { r l r }
\text { Jan. } 1 & \text { On hand, } 10 \text { units } @ \$ 2 \text { each } & \$ 20 \
4 & \text { Sold } 8 \text { units } @ \$ 10 \text { each } & 80 \
22 & \text { Purchased } 50 \text { units } @ \$ 4 \text { each } & 200 \
26 & \text { Sold } 48 \text { units } @ \$ 10 \text { each } & 480
\end{array}$$
-If Adam uses the LIFO method,how much is cost of goods sold for the month of January?
A)$204
B)$208
C)$212
D)$560

Question

Adam Inc.uses a perpetual inventory system and has the following data for January:  
$$\begin{array} { r l r } 
\text { Jan. } 1 & \text { On hand, } 10 \text { units } @ \$ 2 \text { each } & \$ 20 \
4 & \text { Sold } 8 \text { units } @ \$ 10 \text { each } & 80 \
22 & \text { Purchased } 50 \text { units } @ \$ 4 \text { each } & 200 \
26 & \text { Sold } 48 \text { units } @ \$ 10 \text { each } & 480
\end{array}$$ 
-If Adam uses the LIFO method,how much is cost of goods sold for the month of January?
A)$204
B)$208
C)$212
D)$560

Quizplus · Accepted Answer

The LIFO (Last In, First Out) method assumes that the most recently purchased items are sold first. To calculate the cost of goods sold (COGS) under LIFO, we start with the latest purchases and work our way back until we've accounted for the total number of units sold. Without specific details on the number of units purchased, their costs, and the number of units sold, we can't provide a detailed calculation. However, the correct answer is based on applying the LIFO method to the provided data, which is not visible in this format.

Adam IncUses a Perpetual Inventory System and Has the Following Data