Question

Wildhorse Co. just began business and made the following four inventory purchases in June: June 1 168 units $1008 June 10 224 units 1568 June 15 224 units 1792 June 28 168 units 1512 $5880 A physical count of merchandise inventory on June 30 reveals that there are 224 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is

Answer 1

Ending inventory= $1,848

Step-by-step explanation:

Giving the following information:

June 1: 168 units $1,008

June 10: 224 units 1,568

June 15: 224 units 1,792 ($8)

June 28: 168 units 1,512 ($9)

A physical count of merchandise inventory on June 30 reveals that there are 224 units on hand.

To calculate the ending inventory using the FIFO (first-in, first-out) method, we need to use the cost of the last units incorporated into inventory.

Ending inventory= 168*8 + 56*9

Ending inventory= $1,848