Use the following to answer questions 179 - 180:
Charter Company, which uses the perpetual inventory method, purchases different letters for resale.Character had a beginning inventory comprised of seven units at $4 per unit.The company purchased five units at $6 per unit in February, sold seven units in October, and purchased two units at $7 per unit in December.
-Use the information above to answer the following question.If Charter Company uses the LIFO method,what is the cost of goods sold for the year?
A) $38
B) $34
C) $44
D) $72

Question

Quizplus · Accepted Answer

Under the LIFO method, the last items purchased are the first to be sold. Charter Company sold seven units: five units at $6 each (from February purchase) and two units at $4 each (from beginning inventory), totaling $38.

Use the Following to Answer Questions 179 - 180