Ask Question
4 September, 16:52

Inventory records for Herb's Chemicals revealed the following:

March 1, 2021, inventory: 1,000 gallons @ $7.20 per gallon = $7,200

Purchases: Sales:

Mar. 10 600 gals @ $ 7.25 Mar. 5 400 gals

Mar. 16 800 gals @ $ 7.30 Mar. 14 700 gals

Mar. 23 600 gals @ $ 7.35 Mar. 20 500 gals

Mar. 26 700 gals

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

a. $5,040.

b. $5,055.

c. $5,075.

d. $5,135.

+2
Answers (1)
  1. 4 September, 19:31
    0
    Inventory = $5,040

    Explanation:

    Giving the following information:

    March 1, 2021, inventory: 1,000 gallons @ $7.20 per gallon = $7,200

    Purchases:

    Mar. 10 600 gals @ $ 7.25

    Mar. 16 800 gals @ $ 7.30

    Mar. 23 600 gals @ $ 7.35

    Sales:

    Mar. 5 400 gals

    Mar. 14 700 gals

    Mar. 20 500 gals

    Mar. 26 700 gals

    Total units = 3,000

    Total sales = 2,300

    Ending inventory = 700 units

    LIFO (last-in, first-out)

    Inventory = 700*7.20 = $5,040
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Inventory records for Herb's Chemicals revealed the following: March 1, 2021, inventory: 1,000 gallons @ $7.20 per gallon = $7,200 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers