Acme sells 300 units during this quarter.Acme uses the LIFO method.What is its cost of goods sold for the quarter?

Question

Quizplus · Accepted Answer

Acme uses the LIFO method, which means that the most recently purchased units are the first to be sold. Therefore, the cost of goods sold for the quarter is the cost of the 300 most recently purchased units. The cost of each unit is $5, so the total cost of goods sold is $1,500.

Acme Sells 300 Units During This Quarter