Use the following information to answer questions
ABC Company purchases five products for sale in the order and at the costs shown: $$\begin{array} { c c }
\text { Unit } & \text { Cost per Unit } \
1 & \$ 10 \
2 & \$ 12 \
3 & \$ 15 \
4 & \$ 18 \
5 & \$ 13
\end{array}$$
-Assume ABC sells two items and uses the LIFO method of inventory valuation.What amount would appear for cost of goods sold on the income statement?
A)$37
B)$41
C)$22
D)$31

Question

Use the following information to answer questions 
ABC Company purchases five products for sale in the order and at the costs shown: $$\begin{array} { c c } 
\text { Unit } & \text { Cost per Unit } \
1 & \$ 10 \
2 & \$ 12 \
3 & \$ 15 \
4 & \$ 18 \
5 & \$ 13
\end{array}$$
-Assume ABC sells two items and uses the LIFO method of inventory valuation.What amount would appear for cost of goods sold on the income statement?
A)$37
B)$41
C)$22
D)$31

Quizplus · Accepted Answer

Under the LIFO (Last In, First Out) method, the most recently purchased items are sold first. Therefore, the cost of goods sold for the two items would be the cost of the 5th unit ($13) plus the cost of the 4th unit ($18), totaling $31.

Use the Following Information to Answer Questions ABC Company Unit Cost per Unit 1$102$123$154$185$13\begin{array} { c c } \text { Unit } & \text { Cost per Unit } \\1 & \$ 10 \\2 & \$ 12 \\3 & \$ 15 \\4 & \$ 18 \\5 & \$ 13\end{array} Unit 12345​ Cost per Unit $10$12$15$18$13​

Use the Following Information to Answer Questions
ABC Company $\begin{array} { c c } \text { Unit } & \text { Cost per Unit } \\1 & \$ 10 \\2 & \$ 12 \\3 & \$ 15 \\4 & \$ 18 \\5 & \$ 13\end{array}$