Practice Question 50

A company just starting business made the following inventory transactions in August:

Purchase on August 1 300 units $1,560

Sale on August 8 200 units $3,400

Purchase on August 1 2400 units $1,340

Sale on August 24 350 units $5,950

Using the LIFO inventory method, how much is cost of goods sold for August using a perpetual inventory system?

(A) $2,212.50

(B) $6,450

(C) $2,120

(D) $9,350