Question

Metlock, Inc. just began business and made the following four inventory purchases in June: June 1 135 units $940 June 10 180 units 1400 June 15 180 units 1510 June 28 135 units 1190 $5040 A physical count of merchandise inventory on June 30 reveals that there are 190 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is

Answer 1

Ending inventory= $1,651.45

Step-by-step explanation:

Giving the following information:

June 1: 135 units $940

June 10: 180 units $1400

June 15: 180 units $1510 ($8.39)

June 28: 135 units $1190 ($8.81)

A physical count of merchandise inventory on June 30 reveals that there are 190 units on hand.

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

Ending inventory= 1,190 + 55*8.39= $1,651.45