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

The correct answer is "$585.80".

Explanation:

According to the question,

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

=

=

=

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

=

=

=

On July 1, opening stock will be:

=

=

hence,

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

=

= ($)

there was no passage listed but using the process of elimination i'd say it was d. the high economy would do the opposite. i don't see how low prices would affect it. high unemployment is possible but i feel d is the better answer.