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king costume uses a periodic inventory system. the company started the month with 7 masks in its beginning inventory that cost $9 each. during the month, king costume purchased 42 additional masks for $11 each. at the end of the month, king counted its inventory and found that 4 masks remained unsold. using the lifo method, its cost of goods sold for the month is: multiple choice $489. $495. $36. $481.



Answer :

Option a. $489 is the correct answer. The cost of goods sold for the month is $489

Beginning inventory:

Number of units = 7

Cost per unit = $9

Total cost = $63

Purchases:

Number of units = 42

Cost per unit = $11

Total cost = $462

Units remaining at the end of the month = 4

Using the LIFO method we will first sell the products that are procured later and then we sell the products that were purchased before.

So, first we will sell all the 42 units purchase at the cost of $11 per unit

Cost of goods sold for 42 units = 42*11 = $462

Now the remaining 3 units will be sold from the beginning inventory leaving 4 units at the end

Cost of goods sold for 3 units = 3*9 = $27

Total cost = $27 + $462 = $489

Learn more about LIFO:

https://brainly.com/question/28810419

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