Question

Inventory records for Herb's Chemicals revealed the following: March 1, 2021, inventory: 1,350 gallons @ $7.9 per gallon = $10,665 Purchases: Mar. 10 Mar. 16 Mar. 23 670 gals @ $7.95 870 gals @ $8.00 670 gals @ $8.05 Sales: Mar. 5 Mar. 14 Mar. 20 Mar. 26 470 gals 770 gals 570 gals 770 gals Ending inventory assuming LIFO in a perpetual inventory system would be: O $7,662 O $7,762 O $7,782. C

Answer 1

Answer: $7,762

Perpetual LIFO Goods Purchased Cost of Goods sold units Unit Cost Total Cost units Unit Cost fotal Cost 1350 7.90 10665 Date Mar-01 Beginning inventory Ending Inventory units Unit Cost Total Cost 1350 7.90 10665 1350 10665 880 7.90 6952 Mar-05 Sales 470 7.90 3713 0 470 3713 Mar-10 Purchase 670 7.95 5327 880 880 670 1550 780 7.90 17.95 6952 6952 5326.5 12278.5 6162 0 Mar-14 Sales | 7.90 670 100 770 7.95 7.90 5326.5 790 6116.5 0 Mar-16 Purchase | 870 8.00 6960 7.90 0 8.00 780 780 0 870 1650 780 0 300 1080 6162 6162 0 6960 13122 6162 0 2400 8562 Mar-20 Sales 570 8.00 4560 7.90 0 570 4560

Mar-23 Purchase 670 8.05 5394 780 300 7.90 8.00 8.05 670 6162 2400 5393.5 13956 6162 1600 Mar-26 Sales 670 100 8.05 8.00 5394 800 1750 780 200 7.90 8.00 770 2580 6194 20583 980 980 7762 7762 Totals 3560 28345