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Multiple Choice Question 57 A company just starting business made the following four inventory purchases in June: Date Number of units purchased Total cost June 1 190 units $ 410 June 10 200 units 580 June 15 200 units 650 June 28 200 units 510 $2150 A physical count of merchandise inventory on June 30 reveals that there are 270 units on hand. Using the LIFO inventory method, the value of the ending inventory on June 30 is

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Answer:

Ending inventory cost= $642.4

Explanation:

Giving the following information:

Date Number of units purchased Total cost

June 1 190 units $ 410 ($2.16)

June 10 200 units 580 ($2.9)

June 15 200 units 650

June 28 200 units 510

Ending inventory in units= 270

To calculate the value of ending inventory under the LIFO (last-in, first-out), we need to use the cost of the firsts units incorporated into inventory.

Ending inventory cost= 190*2.16 + 80*2.9

Ending inventory cost= $642.4

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