Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period. In Last-in-First-Out method, the cost of last purchased items is sold first. The value of the closing stock consists the initial purchased items. To Calculate: The total cost of the inventory at March 31 using LIFO under periodic inventory system.

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Chapter 8, Problem 2CMA

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Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

In Last-in-First-Out method, the cost of last purchased items is sold first. The value of the closing stock consists the initial purchased items.

To Calculate: The total cost of the inventory at March 31 using LIFO under periodic inventory system.

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