Use the following information to answer Questions below
The following data represent the beginning inventory and, in the order of occurrence, the purchases and sales of McKensie Company for an operating period.

-Assuming McKensie Company uses LIFO perpetual inventory procedures, sale no. 1 is recorded as an entry to Cost of Goods Sold for:
A) $ 910
B) $ 900
C) $ 890
D) $1,080
E) None of the above

Question

Use the following information to answer Questions below
The following data represent the beginning inventory and, in the order of occurrence, the purchases and sales of McKensie Company for an operating period. 
 
-Assuming McKensie Company uses LIFO perpetual inventory procedures, sale no. 1 is recorded as an entry to Cost of Goods Sold for:
A) $ 910 
B) $ 900 
C) $ 890 
D) $1,080 
E) None of the above

Quizplus · Accepted Answer

Under LIFO perpetual inventory, the most recent inventory costs are used to calculate the cost of goods sold. If the most recent inventory purchase was at a cost that totals $910 for the units sold, then that is the amount recorded as COGS for sale no. 1.

Use the Following Information to Answer Questions Below