assessment 2: (algo) weiss company purchased... weiss company purchased two identical inventory items. the…

assessment 2: (algo) weiss company purchased... weiss company purchased two identical inventory items. the first purchase cost $48 and the second cost $50. the company sold one of the items for $58. if the lifo cost flow method, the balance in the inventory account after the sales transaction will be: multiple choice $49 $50 $48 $8

assessment 2: (algo) weiss company purchased... weiss company purchased two identical inventory items. the first purchase cost $48 and the second cost $50. the company sold one of the items for $58. if the lifo cost flow method, the balance in the inventory account after the sales transaction will be: multiple choice $49 $50 $48 $8

Answer

Explanation:

Step1: Understand LIFO method

LIFO (Last - In, First - Out) means the last - purchased item is the first one to be sold.

Step2: Identify cost of sold item

The company has two inventory items with costs $48 and $50. Under LIFO, the item costing $50 is sold first.

Step3: Calculate inventory balance

After selling the item that cost $50, the remaining item in inventory is the one that cost $48.

Answer:

$48