The following information pertains to the Fan Company's inventory item B1008:
$\begin{array}{rlrr}
\text { March 1 } & \text { Inventory Balance } & 400 \text { units } &@\$ 3.10 \
5 & \text { Purchase } & 1,400 \text { units } &@ \$ 3.20 \
14 & \text { Purchase } & 280 \text { units } &@ \$ 3.25 \
31 & \text { Inventory Balance } & 520 \text { units } &
\end{array}$
-In a periodic inventory system,the ending LIFO inventory is

Question

Quizplus · Accepted Answer

Under the LIFO (Last-In, First-Out) method, the most recent purchases are sold first. The ending inventory consists of the oldest costs. To calculate the ending inventory for item B1008:1. Total units at the end of the month = 520 units.2. These 520 units come from the beginning inventory and the earliest purchases.- The first 400 units are from the March 1 inventory @ $3.10 each = $1,240.- The next 120 units (to make up the 520 total) are from the March 5 purchase @ $3.20 each = $384.3. Adding these amounts together: $1,240 + $384 = $1,624.

The Following Information Pertains to the Fan Company's Inventory Item