Question

Pharoah Company just began business and made the following four inventory purchases in June: June 1 186 units $1290 June 10 248 units 1930 June 15 248 units 2080 June 28 186 units 1640 $6940 A physical count of merchandise inventory on June 30 reveals that there are 260 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is

Answer 1

Answer:

Ending Inventory 2,092

Explanation:

PURCHASES  

DATE QUANTY PRICE         SUBTOTAL

1       186                 $6.935484   $1,290.00

10      248                   $7.78226   $1,930.00

15      248                  $8.38710   $2,080.00

28       186                  $8.81720   $1,640.00

Inventory on hand 260

Using FIFO we have to pick from the bottom of the table until reach 240 unit.

last line: June 28th 186 units total cost 1640

240 - 186 = 54 units

we need 54 more units so we go to next purchase

June 15th 54 units  at 8.3810 = 542.034 = 542

Now we add to get total ending ivnentory

186 units 1640

54 units 452

Ending Inventory 2,092

Answer 2

Answer:

2,092

Explanation:

Pharoah Company just began business and made the following four inventory purchases in June: June 1 186 units $1290 June 10 248 units 1930 June 15 248 units 2080 June 28 186 units 1640 $6940 A physical count of merchandise inventory on June 30 reveals that there are 260 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is 2,092.