Answer:
The cost of goods sold using the LIFO menthod is;
d. $3,580
Explanation:
Last in First Out (LIFO) method is an inventory method where the recently purchased good is sold first. This means that when accounting for the cost of goods sold, we use the unit cost of the goods that were purchased recently. In our case;
1 Beginning Inventory 150 units @ $10.00
5 Purchase 220 units @ $12.00
10 Sales 140 units @ $20.00
15 Purchase 100 units @ $13.00
24 Sales 150 units @ $21.00
Step 1: Determine total number of units sold;
Total number of units sold=number of sales on May 24+number of sales on May 10
where;
number of sales on May 24=150 units
number of sales on May 10=140 units
replacing;
Total number of units sold=(150+140)=290 units
Total number of units sold=290 units
Step 2: Determine total cost of goods sold
The first 100 units sold were each sold at $13
The remaining 190 units were each sold at $12
Total cost of goods sold=(100×13)+(190×12)=(1,300+2,280)
Total cost of goods sold=$3,580
If Salmone Company reported the following purchases and sales for its only product. The cost assigned to cost of goods sold using LIFO will be: c. $1,860
Cost of goods sold using LIFO (Last in Last out)
Cost of goods sold=(150 ×$10)+ (30× $12)
Cost of goods sold= $1,500+ $360
Cost of goods sold= $1,860
Inconclusion If Salmone Company reported the following purchases and sales for its only product. The cost assigned to cost of goods sold using LIFO will be: c. $1,860
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