The following information pertains to Julia & Company:
March 1 Beginning inventory = 30 units @ $5
March 3 Purchased 15 units @ $4
March 9 Sold 25 units @ $8
What is the cost of goods sold for Julia & Company assuming it uses LIFO?

Question

The following information pertains to Julia & Company:
 March 1 Beginning inventory = 30 units @ $5
March 3 Purchased 15 units @ $4
March 9 Sold 25 units @ $8
What is the cost of goods sold for Julia & Company assuming it uses LIFO?

Quizplus · Accepted Answer

With LIFO, we assume the last units purchased are the first ones sold. Therefore, the cost of goods sold (COGS) would be calculated as follows: 15 units @ $4 (purchased on March 3) + 10 units @ $5 (remaining from beginning inventory) = $110.

The Following Information Pertains to Julia & Company