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.

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