Answer:
The cost of goods sold account for the 18 units sold was recorded $224
Explanation:
The LIFO is a method used to account value for inventory. Under the method, the last item of inventory purchased is the first one sold.
The company uses the LIFO perpetual inventory method:
1. November 1, Inventory 15 units, $10 per unit. Total $150
2. November 2, Purchased 10 units , $12 per unit. Total $120
The inventory $270
15 units, $10 per unit. Total $150
10 units , $12 per unit. Total $120
3. November 6, Purchased 6 units, $14 per unit . Total $84
The inventory: $354
15 units, $10 per unit. Total $150
10 units , $12 per unit. Total $120
6 units, $14 per unit . Total $84
4. November 8, sold 18 units,
Cost of good sold = 6x$14 + 10 x $12 + 2 x $10 = $84 + $120 + $ 20 = $224
Inventory = 13 x $10 = $130
