Question

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

Answer 1

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` ($)