Swifty Corporation just began business and made the following four inventory purchases in June: June June…
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Question “Swifty Corporation just began business and made the following four inventory purchases in June: June June…”
Swifty Corporation just began business and made the following four inventory purchases in June: June June 10 June 15 June 28 123 units 164 units 164 units 123 units $738 1148 1312 1107 14305 A physical count of merchandise Inventory on June 30 reveals that there are 164 units on hand. Using the LIFO Inventory method, the value of the ending inventory on June 30 is $984, $1435 $1476 $1025
Answer
Ans. | Option 4th $1.025 | |||||
*First, we must calculate the unit cost (rate). | ||||||
Cost per unit = Total cost / Units | ||||||
Date | Units | Rate | Total | |||
1-Jun | 123 | $6.00 | $738 | |||
10-Jun | 164 | $7.00 | $1,148 | |||
15-Jun | 164 | $8.00 | $1,312 | |||
28-Jun | 123 | $9.00 | $1,107 | |||
Total | 574 | $4,305 | ||||
*Calculations to Ending Inventory: | ||||||
Periodic LIFO | ||||||
Date | Units | Rate | Total | |||
1-Jun | 123 | $6.00 | $738 | |||
10-Jun | 41 | $7.00 | $287 | |||
Ending inventory | 164 | $1,025 | ||||
*In LIFO, the units purchased last are released first and the end inventory | ||||||
Units remain after the initial purchase. | ||||||
Conclusion
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