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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