Nordic Industries uses a periodic inventory system.During its first month of operations, Nordic Industries purchased inventory as follows:

There were 100 units in ending inventory on January 31.
-Use the information above to answer the following question.Under the LIFO cost method,what is the cost of goods sold for January?
A) $17,250
B) $19,500
C) $18,750
D) $18,000

Question

Nordic Industries uses a periodic inventory system.During its first month of operations, Nordic Industries purchased inventory as follows:
  
There were 100 units in ending inventory on January 31.
-Use the information above to answer the following question.Under the LIFO cost method,what is the cost of goods sold for January?
A) $17,250 
B) $19,500 
C) $18,750 
D) $18,000

Quizplus · Accepted Answer

Under LIFO (Last in, First out) cost method, the cost of goods sold includes the cost of the last units purchased, which are the 500 units at $37 per unit, followed by the 400 units at $36 per unit.

So, the calculation would be: 
Cost of Goods Sold = (500 units × $37 per unit) + (400 units × $36 per unit) = $18,750.

Therefore, the correct answer is C) $18,750.

Nordic Industries Uses a Periodic Inventory System