Klump Co. Klump Co. uses a perpetual inventory system and had the following inve

Question

Klump Co.



Klump Co. uses a perpetual inventory system and had the following inventory transactions for the month of June.

Refer to the information provided for Klump Co. If the company uses the LIFO inventory costing method, cost of goods sold for the month of June is:

Klump Co.



Klump Co. uses a perpetual inventory system and had the following inventory transactions for the month of June.

June 1 On hand, 50 units at $18.00 each, $900.00 4 Purchased 115 units at $18.20 each, $2,093.00 5 Sold 100 units 10 Purchased 75 units at $18.25 each, $1,368.75 24 Sold 40 units Total cost of goods available for sale $4,361.75 30 On hand, 100 units

Explanation / Answer

The correct answer is a. $ 2,550

Note :

Cost of Goods Sold = 40 Units * $ 18.25 + 100 Units * $ 18.20

= $ 730 + $ 1,820

= $ 2,550

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