1) Beech Soda Inc. uses a perpetual inventory system. The company\'s beginning i

Question

1) Beech Soda Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were                 as follows:Quantity Unit Cost Total Cost Beginning inventory (Jan. 1) 16 $ 10 $ 160 Purchase (Jan. 11) 14 12 168 Purchase (Jan. 20) 23 15 345 Total 53 $ 673 On                 January 14, Beech Soda Inc. sold 25 units of this product. The other 28 units remained in inventory at January 31. Refer to the above data. Assuming that Beech Soda uses the LIFO flow assumption, the cost of goods sold to be recorded at January 14 is: a. $393 b. $268 c. $278 d. $673

Explanation / Answer

Beginning inventory (Jan. 1) 16 $ 10 $ 160

Purchase (Jan. 11) 14 12 168

Purchase (Jan. 20) 23 15 345

Cost of goods sold = 14 x 12 + 11 x 10 = 168+110 = $278

Hence, Option C is correct

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