Question

Mason Company purchased items of inventory as follows. Dec. 2 50 units @ $20 Dec. 12 12 units @ $21 Mason sold 15 units on December 20. Determine the cost of goods sold for the month under the LIFO inventory method.

Answer 1

$312

Step-by-step explanation:

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

Since the 15 units are sold, so the cost of goods sold is

= December 20 units × price on that date + Remaining units × price on that date

= 12 units × $21 + 3 units × $20

= $252 + $60

= $312

The remaining units is

= 15 units - 12 units

= 3 units

Hence, the cost of goods sold under the LIFO inventory method is $312