At the end of January, Higgins Data Systems had an inventory of 690 units, which cost $13 per unit to produce. During February, the company produced 1,030 units at a cost of $16 per unit.


If the firm sold 1,190 units in February, what was its cost of goods sold? (Assume LIFO inventory accounting.)

LIFO last in first out, so you will have to assume a uniform rate of production, you cannot just say the 1030 units were sold first.

daily rate of production 1030 /28 = 36 or 37
daily sales rate 1190/28 =42 0r 43

so you need to construct a model which demonstrates this

on the first day COS is 546, on the second 671

The simple answer of 530 units at the close of the month representing inventory at $13 cost is inaccurate just as assuming finished goods are not received until the end of the month is inaccurate as the old inventory is used away at 6 units a day but some inventory is added at the end of the day. What may be accurate to say is inventory consists of 524 unit at $13 and 6 units at $16 and base your calculations on this