A company's inventory records report the following in November of the current year: BeginningNovember 15 units @ $10 PurchaseNovember 210 units @ $12 PurchaseNovember 66 units @ $14 On November 8, it sold 18 units for $40 each. Using the LIFO perpetual inventory method, what was the amount recorded in the cost of goods sold account for the 18 units sold?

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