Question - Nordic Industries uses a periodic inventory system. During its first month of operations, Nordic Industries purchased inventory as follows:
|
Units
|
Unit Cost
|
Total Cost
|
|
January 3
|
150
|
$15
|
$2,250
|
|
January 12
|
200
|
20
|
4,000
|
|
January 20
|
250
|
20
|
5,000
|
|
January 25
|
300
|
30
|
9,000
|
|
900
|
|
$20,250
|
There were 100 units in ending inventory on January 31.
1. Required information Use the information above to answer the following question. Under the LIFO cost method, what is the cost of goods sold for January?
a. $17,250
b. $19,500
c. $18,750
d. $18,000
2. Required information Under the FIFO cost method, what is the cost of goods sold for January?
a. $17,250
b. $16,500
c. $18,750
d. $18,000