Question

ment 06:00 PM / Remaining: 65 min. Multiple Choice Question 185 Marigold Corp. has the following inventory data: July 1 Beginning inventory 5 Purchases 14 Sale 21 Purchases 30 Sale 33 units at $66 198 units at $62 132 units 99 units at $64 92 units Assuming that a perpetual inventory system is used, what is the ending inventory on a LIFO basis for July? O $7006 O $6718 $6706 0 $6754 By accessing this question Assistance, you will learn while you earn points based on the Point Potential Policy set Questio

Answer 1

1. perpetual inventory system is that the inventory of goods are measured on a real time basis from time to time as the inventory moves.
2. In LIFO method cost of the closing inventory will be measured as the beginning costs of the year.
3. In order to calculate the cost let us calculate the number of units remaining after each sale,
   1. After 1st sale = 33+198-132=99 units, who includes 33 units from opening inventory and 66 units from purchases,
   2. After 2nd sale = 99+99-92=106 units which includes 33 units from opening inventory 66 units from July 5th purchases and remaining 7 units from July 21 purchases.
4. Therefore value of closing inventory as per LIFO method will be 33*66 + 66*62 + 7*64 = $6718.