Answer:
Cost of Goods will be $1,760
Explanation:
In LIFO the unit purchased at the last will be sold first. The earlier purchases will remain in the inventory. In this inventory system the cost of goods sold is based on the recent prices of the product.
Beginning Inventory ( 100 x $2 ) $200
Purchases in the year ( 900 x $2.2 ) $1,980
Sale during the year ( 800 x $2.2 ) $1,760
Closing Inventory ( ( 100 units x $2.2 ) + ( 100 x 2 ) = $420
Unit sold = Beginning Inventory + Purchases -Closing Inventory = 100 units + 900 units - 200 unit = 800 units
