12. Lauer Corporation uses the periodic inventory system and has provided the fo
ID: 2586587 • Letter: 1
Question
12.
Lauer Corporation uses the periodic inventory system and has provided the following information about one of its laptop computers:
Date
Transaction
Number of Units
Cost per Unit
1/1
100
$800
5/5
Purchase
200
$900
8/10
Purchase
300
$1,000
10/15
Purchase
200
$1,100
During the year, Lauer sold 750 laptop computers.
What was cost of goods sold using the LIFO cost flow assumption?
A.
$725,000.
B.
$740,000.
C.
$735,000.
D.
$720,000.
12.
Lauer Corporation uses the periodic inventory system and has provided the following information about one of its laptop computers:
Date
Transaction
Number of Units
Cost per Unit
1/1
100
$800
5/5
Purchase
200
$900
8/10
Purchase
300
$1,000
10/15
Purchase
200
$1,100
During the year, Lauer sold 750 laptop computers.
What was cost of goods sold using the LIFO cost flow assumption?
A.
$725,000.
B.
$740,000.
C.
$735,000.
D.
$720,000.
Explanation / Answer
LIFO Cost of goods sold 740,000 Unit Sold 750 200*1100 220,000 300*1000 300,000 200*900 180,000 50*800 40,000 Cost of goods sold 740,000
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