Question

Alpha First Company just began business and made the following four inventory purchases in June: June 1 150 units $ 780 June 10 200 units 1,170 June 15 200 units 1,260 June 28 150 units 990 A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand. Using the LIFO inventory method, the value of the ending inventory on June 30 is

Answer 1

Solution

Value Of Ending Inventory

$ 234,000

Working

LIFO
Total Units Available for sale		700
Units Sold		450
Closing Stock in Units		250
Valuation
Ending Inventory	150	@	$           780.00	$ 117,000
	100	@	$       1,170.00	$ 117,000
Value Of Ending Inventory				$         234,000
Cost of Goods sold	751500 minus 234000			$         517,500