Inventory records for Herb's Chemicals revealed the following: March 1, 2024, inventory: 1,350 gallons @ $7.9 per gallon = $10,665 Purchases: March 10 March 16. March 23 Sales: March 5 March 14 March 201 March 26 470 gallons 770 gallons 570 gallons 770 gallons Ending inventory assuming LIFO in a perpetual inventory system would be: 670 gallons@ $7.95 870 gallons@ $8.00 670 gallons@ $8.05

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in…