When using LIFO an accounting department only needs to know

When using LIFO, an accounting department only needs to know:

A.

the average price of a specific unit.

B.

the specific price of a specific unit.

C.

which units were sold, not how many units were sold.

D.

how many units were sold, not which units were sold.

Solution

Dear student....Thank you for using chegg....correct answer is

D.

how many units were sold, not which units were sold.

since as per LIFO method it is assumed that inventory purchased last is sold first....Thus the accounting departemnt only needs to know the no of units sold to compute cost of goods sold as cost would be assigned accordingly ...