Question

Alpha First Company just began business and made the following four inventory purchases in June: June 1 150 units $1040 June 10 200 units 1560 June 15 200 units 1680 June 28 150 units 1320 $5600 A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand. Using the LIFO inventory method, the value of the ending inventory on June 30 is $1508. $1848. $1456. $1824.

Answer 1

a. $1508

Step-by-step explanation:

June 1 150 units

June 10 200 units

June 15 200 units

June 28 150 units

Total 700 units

Out of above, only 210 units are in hand. Under LIFO method, 150 units are from 1st June and 60 units are from 10th June.

Date Units (a) Per unit cost (b) Ending inventory (a*b)

June 1 150 $6.93 (1040/150) $1.040

June 10 60 $7.8 (1560/200) $468

Total 210 $1,508

So, using the LIFO inventory method, the value of the ending inventory on June 30 is $1,508