Question

A company just starting business made the following four inventory purchases in June: June 1 150 units $2.60 each $ 390 total cost June 10 200 units 2.925 585 June 15 200 units 3.15 630 June 28 150 units 3.4 510 Cost of Good Available for Sale $2,115 A physical count of merchandise inventory on June 30 reveals that there are 300 units on hand. Using the LIFO inventory method, the value of the ending inventory rounded to a dollar on June 30 is Group of answer choices a.975 b.983 c.1,140 d.829

Answer 1

d. 829

Step-by-step explanation:

The computation of the ending inventory using the LIFO method is shown below:

Since there are 300 units in hand which reflects the ending inventory units so

= 150 units ×$2.60 + 150 units $2.925

= $390 + $438.75

= $828.75

i.e d. 829

So 150 units is taken from June and the remaining units i.e 150 units are taken from June 10