Which of the following is true regarding a physical count of inventory at year end in a perpetual inventory system?

Multiple Choice

• A physical count is needed because theft, breakage, and spoilage during the year likely have not been captured in a perpetual system.

• A physical count is needed to understand whether inventory costs have increased or decreased during the year.

• A physical count is needed because there is no record of units sold during the year.

• A physical count is needed to understand whether the selling prices of inventory have increased or decreased during the year.

Inventory for Nieva Chan Beer Distributors shows the following information:

March 1, 2021, inventory: 1,150 gallons @ $7.50 per gallon = $8,625

Purchases:							Sales:
Mar. 10	630	gals	@	$	7.55		Mar. 5	430	gals
Mar. 16	830	gals	@	$	7.60		Mar. 14	730	gals
Mar. 23	630	gals	@	$	7.65		Mar. 20	530	gals
							Mar. 26	730	gals

Ending inventory assuming LIFO in a periodic inventory system would be:

Multiple Choice

• $6,165.

• $6,150.

• $6,191.

• $6,251.