Question

King Costume started the month with 8 masks in its beginning inventory that cost $10 each. During the month, King Costume purchased 40 additional masks for $12 each. At the end of the month, King counted its inventory and found that 5 masks remained unsold. If King Costume uses LIFO periodic, its Cost of Goods Sold for the month isa. $434.

b. $440.
c. $24.
d. $428.

Answer 1

$510

Step-by-step explanation:

units cost total

beginning inventory 8 $10 $80

purchases 40 $12 $480

ending inventory 5

FIFO ⇒ $12 $60

LIFO ⇒ $10 $50

average = $560 / 48 ⇒ $11.67 $58.33

under LIFO, the cost of goods sold = ($80 + $480 ) - $50 = $510