The inventory data for an item for November are: $\begin{array}{lll}
25 \text { units at } \$ 20 \text { each } & \text { Inventory } & \text { Nov. } 1 \
30 \text { units at } \$ 21 \text { each } & \text { Purchase } & 10 \
10 \text { units at } \$ 22 \text { each } & \text { Purchase } & 30 \
35 \text { units } & \text { Sale } &
\end{array}$ Using the last-in, first-out method, what is the cost of the merchandise inventory of 30 units on November 30?
A) $640
B) $630
C) $600
D) $605

Question

Quizplus · Accepted Answer

Under the LIFO method, the last items purchased are the first to be used. After the sale of 35 units, the remaining inventory consists of 30 units from the initial inventory (25 units at $20 each) and 5 units from the purchase on November 10 (5 units at $21 each). The cost is (25 units x $20) + (5 units x $21) = $605.

The Inventory Data for an Item for November Are Using the Last-In, First-Out Method, What Is the Cost of \text