Use this information to answer the following question. A periodic inventory system is used.
Using LIFO,cost of goods sold is
A)$3,480.
B)$8,928.
C)$2,664.
D)$8,112.

Question

Use this information to answer the following question.  A periodic inventory system is used.
Using LIFO,cost of goods sold is
A)$3,480. 
B)$8,928. 
C)$2,664. 
D)$8,112.

Quizplus · Accepted Answer

Since LIFO (last in, first out) method is used, the cost of goods sold will be based on the cost of the latest purchased items. Going backwards in time, the last purchase was for $6 per unit and there were 1,488 units purchased, which comes to a total of $8,928. Therefore, the correct answer is B.

Use This Information to Answer the Following Question