Question
9.Grand Forks uses a perpetual inventory system. Information about inventory is contained in the table below. Inventory is sold for $5.00 per unit. Date Number
9.Grand Forks uses a perpetual inventory system. Information about inventory is contained in the table
below. Inventory is sold for $5.00 per unit.
Date
Number of Units
Unit Cost
Total Cost
January 01
Beginning Inventory
2,000
$2.00
$4,000
January 10
Sales
1,200
January 15
Purchases
4,000
$2.25
$9,000
January 20
Sales
2,500
January 25
Purchases
5,000
$2.40
$12,000
January 30
Sales
6,000
Determine the cost of goods sold for the January 20th sale assuming that the company uses the LIFO cost flow method.
A.$5,425.
B.$5,850.
C.$5,625.
D.$5,725.
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