The Xu Corporation uses a periodic inventory system.The company has a beginning inventory of 300 units at $5 each on January 1.Xu purchases 500 units at $4 each in February and 200 units at $6 each in March.There were no additional purchases or sales during the remainder of the year.
-Use the information above to answer the following question.Xu sells 300 units during the quarter.If Xu uses the LIFO method,what is its cost of goods sold?
A) $1,600
B) $1,400
C) $1,500
D) $1,800

Question

Quizplus · Accepted Answer

The Answer of The Xu Corporation uses a periodic inventory system.The company has a beginning inventory of 300 units at $5 each on January 1.Xu purchases 500 units at $4 each in February and 200 units at $6 each in March.There were no additional purchases or sales during the remainder of the year.
-Use the information above to answer the following question.Xu sells 300 units during the quarter.If Xu uses the LIFO method,what is its cost of goods sold?
A) $1,600
B) $1,400
C) $1,500
D) $1,800

The Xu Corporation Uses a Periodic Inventory System