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16 January, 22:05

A company had inventory of 5 units at a cost of $20 each on November 1. On November 2, they purchased 10 units at $22 each. On November 6, they purchased 6 units at $25 each. On November 8, they sold 18 units for $54 each. Using the LIFO perpetual inventory method, what was the cost of the 18 units sold?

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  1. 17 January, 00:37
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    Cost of goods sold = $410

    Explanation:

    Giving the following information:

    November 1: 5 units for $20 each.

    On November 2, they purchased 10 units at $22 each.

    On November 6, they purchased 6 units at $25 each.

    On November 8, they sold 18 units for $54 each.

    The company uses LIFO (last in, first out) as an inventory method.

    Cost of goods sold = 6units*25 + 10units * 22 + 2units * 20 = $410
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