A company purchased 200 units for $40 each on January 31.It purchased 165 units for $50 each on February 28.It sold 225 units for $65 each from March 1 through December 31.If the company uses the last-in,first-out inventory costing method,what is the amount of Cost of Goods Sold on the income statement for the year ending December 31? (Assume that the company uses a perpetual inventory system.)

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Quizplus · Accepted Answer

A) Cost of Goods Available for Sale: 11ea8873_d478_bb78_bb89_71c529e84e07_TB5026_00 Number of units sold = 225 units of which 165 units were purchased on Feb. 28 at $50 per unit and 60 units were purchased on Jan. 31 at $40 per unit. 11ea8873_d478_bb79_bb89_53aa25c276e4_TB5026_00

A Company Purchased 200 Units for $40 Each on January