Final answer:
Using the Last In, First Out (LIFO) method, the cost of goods sold (COGS) for November is d. $627, calculated by summing up the costs from the most recent purchases at the time of each sale.
Step-by-step explanation:
To calculate the cost of goods sold (COGS) for November using the Last In, First Out (LIFO) method in a perpetual system, we should account for the inventory sales and purchases chronologically. The sales occurred on November 4 and November 17 for a total of 27 units sold (11 units + 16 units).
Under LIFO, the latest inventory purchases are sold first. So for the sale on November 17 of 16 units, we should take the 24 units purchased on November 30 at the rate of $22 each. Since no other sales happened after the purchase, all 16 units sold at this time will be accounted for at $22 per unit.
Next, for the 11 units sold on November 4, we have 20 units from the November 1 inventory at $25 each and the 25 units purchased on November 10 at $22 each. But we only need to account for 11 units, so all 11 units would come from the November 1 batch since LIFO prioritizes the latest inventory, which in this case is the November 1 inventory.
Now, let's calculate the COGS:
For the 16 units sold on November 17: 16 units x $22/unit = $352
For the 11 units sold on November 4: 11 units x $25/unit = $275
Adding them up: $352 + $275 = $627
Thus, the correct answer for the COGS for November is d. $627.