[The following information applies to the questions displayed below.]
Harding Systems,Inc.uses a periodic inventory system.The purchases of a particular product during the year are shown below:
At December 31 the ending inventory consisted of 1,500 units.
-Compute the cost of goods sold for the current year based on the LIFO method of inventory valuation.
A)$12,500
B)$29,175
C)$10,975
D)$27,650

Question

[The following information applies to the questions displayed below.]
Harding Systems,Inc.uses a periodic inventory system.The purchases of a particular product during the year are shown below:
  At December 31 the ending inventory consisted of 1,500 units.
-Compute the cost of goods sold for the current year based on the LIFO method of inventory valuation.
A)$12,500 
B)$29,175 
C)$10,975 
D)$27,650

Quizplus · Accepted Answer

Using the LIFO method, the cost of goods sold is calculated by selling the most recent units first. Therefore, the cost of the 1,500 units from the ending inventory is matched with the cost of the 1,500 units purchased on November 15 and the cost of 1,200 units purchased on October 20, which totals $29,175.

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