What was cost of goods sold using the LIFO cost flow assumption?

A) $725,000.
B) $740,000.
C) $735,000.
D) $720,000.

Question

What was cost of goods sold using the LIFO cost flow assumption?A) $725,000.B) $740,000.C) $735,000.D) $720,000.

Hannah Paeth · Accepted Answer

Final Answer : B, Explanation :  Using the LIFO cost flow assumption, the cost of goods sold will be based on the cost of the most recently purchased laptop computers. Since Lauer sold 750 laptop computers during the year, the cost of goods sold will be calculated as follows:750 laptops x $986 per laptop = $739,500Therefore, the answer is B) $740,000 (rounded to the nearest thousand).

What was cost of goods sold using the LIFO cost flow assumption?

A) $725,000.
B) $740,000.
C) $735,000.
D) $720,000.

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