Question

In: Accounting

Oriole has the following inventory data: July 1 Beginning inventory 34 units at $67 5 Purchases...

Oriole has the following inventory data:

July 1 Beginning inventory 34 units at $67
5 Purchases 202 units at $63
14 Sale 134 units
21 Purchases 101 units at $65
30 Sale 94 units


Assuming that a perpetual inventory system is used, what is ending inventory (rounded) under the average cost method for July? (Round intermediate calculations to 3 decimal places, e.g. 12.531.)

a. $6319

b. $7007

c. $7075

d. $7051

Solutions

Expert Solution

Correct answer---------------(b) $7007

Working

Date Goods Purchased Cost of Goods Sold Inventory Balance
# of Units Cost Per Unit Cost of Goods Available for sale # of Units Sold Cost per Unit Cost of Goods Sold # of Units Cost per Unit Inventory Balance
1-Jul 34 $   67.00 $       2,278.00
5-Jul 202 $   63.00 $       12,726.00 34 $   67.00 $       2,278.00
202 $   63.00 $    12,726.00
236 $   63.58 $    15,004.00
14-Jul 134 $    63.58 $      8,519.22 102 $   63.58 $       6,484.78
21-Jul 101 $   65.00 $         6,565.00 102 $   63.58 $       6,484.78
101 $   65.00 $       6,565.00
203 $   64.28 $    13,049.78
July 30 94 $    64.28 $      6,042.76 109 $   64.28 $       7,007.02

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