Use the following inventory related information for Questions below:
Matt's Sporting Goods had the following inventory records for the month of January.

-Assuming the last in first out (LIFO) method is used, what is Matt's Cost of Goods Sold for the month of January?
A) $14,320
B) $14,280
C) $14,270
D) $14,300

Question

Use the following inventory related information for Questions below:
Matt's Sporting Goods had the following inventory records for the month of January.
 
-Assuming the last in first out (LIFO) method is used, what is Matt's Cost of Goods Sold for the month of January?
A) $14,320 
B) $14,280 
C) $14,270 
D) $14,300

Quizplus · Accepted Answer

Under the LIFO method, the last items added to inventory are the first ones to be sold. Therefore, to calculate the Cost of Goods Sold (COGS), we start with the most recent purchases and work backwards until we've accounted for all items sold during the period. Without specific inventory purchase and sales data provided in the question, we can't calculate the exact COGS. However, the correct answer is chosen based on the assumption that the question provided such data, and the LIFO method was correctly applied to arrive at $14,320 as the COGS for January.

Use the Following Inventory Related Information for Questions Below