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Oriole has the following inventory data: July 1 Beginning inventory 34 units at $6.70 5 Purchases 134 units at $7.40 14 Sale 90 units 21 Purchases 67 units at $8.10 30 Sale 63 units Assuming that a perpetual inventory system is used, what is the value of ending inventory on a LIFO basis for July

1 Answer

7 votes

Answer:

The correct answer is "$585.80".

Step-by-step explanation:

According to the question,

Sold 63 units on July 30 from purchase of July 21, the remaining will be:

=
(67-63)* 8.1

=
4* 8.1

=
32.4

Sold 90 units on July 14 from purchase of 5, the remaining will be:

=
(134-90)* 7.4

=
44* 7.4

=
325.6

On July 1, opening stock will be:

=
34* 6.7

=
227.8

hence,

The total value of inventory as per LIFO method will be:

=
32.4+325.6+227.8

=
585.80 ($)

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