Question 7

Marigold Bookstore had 450 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as follows:

Date

Purchases

Sales

Jan.14

425 @ $15

17

290 @ $8

25

290 @ $10

29

210 @ $15

Marigold does not maintain perpetual inventory records. According to a physical count, 395 units were on hand at January 31.

The cost of the inventory at January 31, under the LIFO method is:

$3950.

$3555.

$2370.

$4475

Question 8

At May 1, 2020, Swifty Company had beginning inventory consisting of 200 units with a unit cost of $8.00. During May, the company purchased inventory as follows:

880 units at $8.00

520 units at $7.60

The company sold 900 units during the month for $14 per unit. Swifty uses the average cost method. The value of Swifty's inventory at May 31, 2020 is

$11018.

$5666.

$5352.

$5509.