Question

Alpha First Company just began business and made the following four inventory purchases in June:June 1 150 units $780June 10 200 units 1,170June 15 200 units 1,260June 28 150 units 990$4,200A 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_________

Answer 1

Answer:

value of ending inventory = $1131

Explanation:

given data

June 1  150 units          $780

June 10  200 units         1,170

June 15  200 units   1,260

June 28  150 units           990

                                         $4,200

to find out

he value of the ending inventory

solution

first we get here at 1st june cost per unit will be

cost per unit = $\frac{total\ cost\ inventory }{no\ of\ unit}$  .............1

cost per unit = $\frac{780}{150}$

cost per unit = $5.2 per unit

and

on 10th june cost per unit will be

cost per unit = $\frac{total\ cost\ inventory }{no\ of\ unit}$  .............1

cost per unit = $\frac{1170}{200}$

cost per unit = $5.85 per unit

and

at 30th june value of ending inventory that is

value of ending inventory = ( 150 × $5.2 ) + ( 210 - 150 ) × $5.85

value of ending inventory = $780 + $351

value of ending inventory = $1131