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7 January, 20:29

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.

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Answers (1)
  1. 7 January, 22:07
    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
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