Answer:
the cost of the merchandise sold for November if the company uses LIFO is c. $590
Explanation:
LIFO Inventory System sells the Inventory recently acquired first followed by the Older Inventory Acquired.
Cost of the merchandise sold for November - Calculation
November 4 : 10 units × $19 =$190
November 17 : 20 units × $20 =$400
Total =$590
Answer:
c.$590
Explanation:
The LIFO system is one in which items are last purchased are sold first. this may not be the best system of inventory valuation for items with expiry dates.
Given that the company sold 10 and 20 units on Nov 4 and Nov 17
The sale on Nov 4 would have been the items purchased on Nov 1 while the sale on Nov 17 must have been from the purchase made on Nov 10
Hence Inventory sold cost
= $19 * 10 + $20 *20
= $590
