Question

Robert Sound Company just began business and made the following four inventory purchases in June: data June 1 June 10 June 15 June 28 150 units 200 units 200 units 150 units $ 1,040 1,560 1,680 1,320 $5,600 A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand. Using the FIFO inventory method, the recorded value of the ending inventory on June 30 is:_______.

a. $1,456.
b. $1,508.
c. $1,848
d. $1,824.

Answer 1

d. $1,824.

Step-by-step explanation:

data

June 1 June 10 June 15 June 28 Total

150 units 200 units 200 units 150 units

$ 1,040 1,560 1,680 1,320 $5,600

A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand.

Using the FIFO inventory method, the recorded value of the ending inventory on June 30 is

d. $1,824

150 units at $ 1320

60 units at $ (1680/200)* 60 = $ 504

Total $ 1320 + $ 504= $ 1824