Question

Mountain Made started the month with 3 quilts in its beginning inventory that cost $200 each. During the month, Mountain Made purchased 20 additional quilts for $210 each. At the end of the month, Mountain Made counted its inventory and found that 5 quilts remained unsold. If Mountain Made uses LIFO periodic, its Cost of Goods Sold for the month is ______.

Answer 1

The Cost of Goods Sold for the month is $3780.

Step-by-step explanation:

closing inventory = 5 units

opening inventory = 3 units

purchases during the month = 20 units

units sold during the month = opening inventory + purchases during the month - closing inventory

= 3 + 20 - 5

= 18 units

cost of goods sold = 18*$210

= $3780

Therefore, The Cost of Goods Sold for the month is $3780.