Question

A company just starting business made the following four inventory purchases in June: June 1 150 units $ 390 June 10 200 units 598 June 15 200 units 630 June 28 150 units 510 $2,128 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the LIFO inventory method, the value of the ending inventory on June 30 is

Answer 1

Answer:

$539.50

Explanation:

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

Since there is 200 units on hand

The 150 units taken at $390 and the remaining units i.e 50 units at $598 so the ending inventory is

= 150 units × $2.6 + 50 units × $2.99

= $390 + $149.50

= $539.50

The per unit is come from

= $390 ÷ 150 units = $2.6

And,

= $598 ÷ 200 units = $2.99