tb mc qu. 05 - 114 (static) eastview company uses a periodic... eastview company uses a periodic lifo…

tb mc qu. 05 - 114 (static) eastview company uses a periodic... eastview company uses a periodic lifo inventory system, and has the following purchases and sales: date activities units acquired at cost units sold at retail january 1 purchase 150 units @ $9 = $1,350 january 17 sales 120 units sold january 20 purchase 160 units @ $11 = $1,760 january 29 sales 150 units sold what is the value of cost of goods sold? multiple choice $2,730 $2,750 $2,670 $440 $380

tb mc qu. 05 - 114 (static) eastview company uses a periodic... eastview company uses a periodic lifo inventory system, and has the following purchases and sales: date activities units acquired at cost units sold at retail january 1 purchase 150 units @ $9 = $1,350 january 17 sales 120 units sold january 20 purchase 160 units @ $11 = $1,760 january 29 sales 150 units sold what is the value of cost of goods sold? multiple choice $2,730 $2,750 $2,670 $440 $380

Answer

Explanation:

Step1: Calculate total units sold

Total units sold = 120 + 150 = 270 units

Step2: Allocate costs using LIFO

The company uses LIFO. First, we use the units from the most - recent purchase. The January 20 purchase was 160 units at $11 each. We use all 160 units from this purchase. The remaining units to account for in cost of goods sold are 270 - 160=110 units. These come from the January 1 purchase at $9 each. Cost of goods sold = (160×$11)+(110×$9) = $1760 + $990 = $2750

Answer:

$2750, so the correct option is: $2750 (assuming the option with $2750 is the correct - labeled one among the multiple - choice options)