Assuming that Beech Soda uses the LIFO flow assumption, the cost of goods sold to be recorded at January 14 is:
A) $393.
B) $268.
C) $278.
D) $673.

Question

Quizplus · Accepted Answer

Using LIFO, we assume that the last items purchased are the first items sold. Therefore, the cost of goods sold for the 300 units sold on January 14 would be calculated using the cost of the most recent batch purchased on January 11 (100 units at $2.70 per unit) and the remaining 200 units from the batch purchased on January 5 (at $1.39 per unit).

Cost of goods sold = (100 x $2.70) + (200 x $1.39) = $278.

Assuming That Beech Soda Uses the LIFO Flow Assumption, the Cost