Assume that Dell has a three year agreement with Manhattan College to deliver 150 laptop computers with agreed specifications at a price of $500 each. At the end of the first year Dell has delivered 70 laptops, which are being used by Manhattan College faculty. Over the year, the inventory of laptops of the specification and associated cost of producing them was as follows: Laptop Inventory at Dell Timing Number of units Cost per unit Beginning inventory 3000 350 First Quarter Production 1500 375 Second Quarter Production 1000 400 Third Quarter Production 5000 425 Fourth Quarter Production 2000 450 What COGS should Dell recognize on the sale to Manhattan if the delivery of all of the laptops was made at 12:01 AM on January 1 and Dell uses the LIFO method of inventory costing? 

a. $24,500 

b. $28,210 

c. $31,500 

d. $26,250

Answer rating: 100% (QA)

pen unit 350 No of unit Cost Beginning inventory first quanten ... View the full answer