Answer:
Inventory valuation $5,140
Explanation:
The inventory method used is LIFO, so the ending inventory shall be valued from the latest purchases.
The inventory movement can be depicted below:
March 01 Beginning Inventory 1,000 @ $ 7.20 $ 7,200
March 10 Purchases 600 @ $ 7.25 $ 4,350
March 16 Purchases 800 @ $ 7.30 $ 5.840
March 23 Purchases 600 @ $ 7.35 $ 4.410
Units sold (2,300)
Units in inventory end of March 700
Under the LIFO inventory valuation method, the latest purchases are considered for inventory valuation.
600 units from March 23 purchases 600 units @ $ 7.35 = $ 4,410
100 units from March 16 purchases 100 units @ $ 7.30 = $ 730
Total inventory value for 700 units $ 5,140
