The inventory data for an item for November are: Using a perpetual system, what is the cost of the merchandise sold for November if the company uses LIFO?
A) $610
B) $600
C) $590
D) $580

Question

The inventory data for an item for November are:  Using a perpetual system, what is the cost of the merchandise sold for November if the company uses LIFO?
A) $610 
B) $600 
C) $590 
D) $580

Quizplus · Accepted Answer

LIFO (last-in, first-out) assumes that the most recently purchased items are sold first. In order to determine the cost of goods sold using LIFO, we need to know the cost of the items in inventory at the end of the month (ending inventory) and the cost of the items that were sold during the month (cost of goods sold).

Unfortunately, the inventory data given in the question only includes a product code and a serial number, and does not provide any information about the cost of the items. Therefore, it is impossible to calculate the cost of goods sold using LIFO with the information given.

The answer cannot be determined with the information given.

The Inventory Data for an Item for November Are