Question

Mansfield Company has a periodic inventory system and uses the LIFO method to assign costs to inventory and cost of goods sold. Consider the following information:


Date Description # of units Cost per unit
January 1 Beginning inventory 100 $5
October 2 Purchase 75 $4
December 5 Sales 125

What amounts would be reported as the cost of goods sold and ending inventory balances for the period?

A) Cost of goods sold $625; Ending inventory $175

B) Cost of goods sold $755; Ending inventory $225

C) Cost of goods sold $550; Ending inventory $250

D) Cost of goods sold $600; Ending inventory $200

Answer

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