Mansfield Company has a periodic inventory system and uses the LIFO method to as

Question

Mansfield Company has a periodic inventory system and uses the LIFO method to assign costs to inventory and cost of goods sold. Consider the following information: Date January 1 October 2Purchase December 5Sales Cost per unit of units 100 75 125 Description Beginning inventory $5 $4 What amounts would be reported as the cost of goods sold and ending inventory balances for the period? Cost of goods sold $625; Ending inventory $175 Cost of goods sold $755; Ending inventory $225 Cost of goods sold $550; Ending inventory $250 Cost of goods sold $600; Ending inventory $200

Explanation / Answer

Cost of goods sold=(75*4)+(50*5)= $550 Ending inventory=50*5=$250 Option 3 is correct

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