A company just starting business made the following four inv

A company just starting business made the following four inventory purchases in June June 1 Juze 10 Jane 15 Juse 2 150 nsts 200 nits 200 units 150 units 390 585 630 2.115 A physical count of merchandise inventory on June 30 reveals that there are 200 u nits on hand Using the LIFo inventony method, the value br the ending inventory on June 30 is $536 $668 $1,447 $1564

Solution

Answer:

Cost of Ending Inventory = Cost of Goods available for Sale – Cost of Goods Sold
Cost of Goods available for Sale = $2,115

Units sold = Units available for Sales – Ending Inventory Units
Units available for Sales = 150 + 200 + 200 + 150 = 700 Units
Units sold = 700 units – 200 units
Units sold = 500 units

Cost of Goods Sold = $510 + $630 + ($585 / 200 * 150)
Cost of Goods Sold = $510 + $630 + $438.75
Cost of Goods Sold = $1,578.75

Cost of Ending Inventory = $2,115 - $1,578.75
Cost of Ending Inventory = $536.25 or $536