Question

Whispering Winds Corp. just began business and made the following four inventory purchases in June: June 1 147 units $882 June 10 196 units 1372 June 15 196 units 1568 June 28 147 units 1323 $5145 A physical count of merchandise inventory on June 30 reveals that there are 196 units on hand. Using the LIFO inventory method, the value of the ending inventory on June 30 is

Answer 1

Answer:

the ending inventory using the LIFO method is $1,225

Explanation:

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

Since there are 196 closing units

So,

= 146 units × $6 + 49 units × $7

= $882 +  $343

= $1,225

The $6 come from

= $882 ÷ 147 units

And, $7 comes from

= $1,372 ÷ 196 units

Hence, the ending inventory using the LIFO method is $1,225