Question

Skysong, Inc. just began business and made the following four inventory purchases in June:

June 1 123 units $850
June 10 164 units 1280
June 15 164 units 1380
June 28 123 units 1080
$4590

A physical count of merchandise inventory (rounded to whole dollar) on June 30 reveals that there are 170 units on hand. The inventory method which results in the highest gross profit for June is

Answer 1

The inventory method which results in the highest gross profit for June is FIFO

Step-by-step explanation:

Month Units Cost U/cost LIFO E.INVEN. I.COST

jun-01 123 850 7 123 861 0

jun-10 164 1280 8 47 376 936

jun-15 164 1380 8 0 0 1312

jun-28 123 1080 9 0 0 1107

4590 170 1237 3355

FIFO E.INVEN. I.COST

7 0 0 861

8 0 0 1312

8 47 376 936

9 123 1107 0

170 1483 3109