A company purchased items for inventory during 2020 at continuously higher costs. Its last two purchases of 2020 were 20 units on December 20 at a cost of $14 per unit and 30 units on December 30 at a cost of $15 per unit. On December 28, 2020 the company made its last sale for the year when it sold 10 units. Which inventory cost flow assumption will cause the $15 cost per unit to be expensed as part of the year 2020's cost of goods sold? Select one: A. LIFO Perpetual B. Weighted average cost C. LIFO Periodic D. None of the above
A company purchased items for inventory during 2020 at continuously higher costs. Its last two purchases of 2020 were 20 units on December 20 at a cost of $14 per unit and 30 units on December 30 at a cost of $15 per unit. On December 28, 2020 the company made its last sale for the year when it sold 10 units. Which inventory cost flow assumption will cause the $15 cost per unit to be expensed as part of the year 2020's cost of goods sold? Select one: A. LIFO Perpetual B. Weighted average cost C. LIFO Periodic D. None of the above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company purchased items for inventory during 2020 at continuously higher costs. Its last two purchases of 2020 were 20 units on December 20 at a cost of $14 per unit and 30 units on December 30 at a cost of $15 per unit. On December 28, 2020 the company made its last sale for the year when it sold 10 units. Which inventory cost flow assumption will cause the $15 cost per unit to be expensed as part of the year 2020's cost of goods sold?
Select one:
A. LIFO Perpetual
B. Weighted average cost
C. LIFO Periodic
D. None of the above
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