Question

# The Boxwood Company sells blankets for \$33 each. The following was taken from the inventory records...

The Boxwood Company sells blankets for \$33 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.

 Date Blankets Units Cost May 3 Purchase 7 \$14 10 Sale 4 17 Purchase 10 \$16 20 Sale 5 23 Sale 2 30 Purchase 8 \$23

Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the LIFO inventory cost method.

a.\$32

b.\$56

c.\$184

d.\$80

 PERPETUAL LIFO: Purchase Cost of goods sold Balance Date Quantity Rate Total cost Quantity Rate Total cost Quantity Rate Total cost 3-May 7 14 98 7 14 98 10-May 4 14 56 3 14 42 17-May 10 16 160 3 14 42 10 16 160 20-May 5 16 80 3 14 42 5 16 80 23-May 2 16 32 3 14 42 3 16 48 30-May 8 23 184 3 14 42 3 16 48 8 23 184 Total Cost of goods sold 168 Ending inventory 274

The correct option is d-\$80

the cost of goods sold for the sale of May 20 using the LIFO inventory cost method:- 5 units purchased on 17 may @\$16 = \$80

Kindly give me thumbs up if u like my answer...Thanks!!!

#### Earn Coins

Coins can be redeemed for fabulous gifts.