Question

Coronado Industries sells one product and uses a perpetual inventory system. The beginning inventory consisted of 79 units that cost $19 per unit. During the current month, the company purchased 483 units at $19 each. Sales during the month totaled 365 units for $44 each. What is the cost of goods sold using the LIFO method?

Answer 1

the cost of goods sold under LIFO method is $6,935

Step-by-step explanation:

The computation of the cost of goods sold under LIFO method is shown below:

= Sales during the month × cost per unit

= 365 units × $19

= $6,935

Hence, the cost of goods sold under LIFO method is $6,935

We simply applied the above formula