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The following inventory transactions occurred during June. The company sold 525

ID: 2523772 • Letter: T

Question

The following inventory transactions occurred during June. The company sold 525 units in June.

A) Calculate the number of units in ending inventory at June 30

B) Calculate the value of ending inventory using FIFO and LIFO at June 30.

Beginning inventory

Purchase 6/15

Purchase 6/28

850 units

The following inventory transactions occurred during June. The company sold 525 units in June.

A) Calculate the number of units in ending inventory at June 30

B) Calculate the value of ending inventory using FIFO and LIFO at June 30.

UNITS COST VALUE

Beginning inventory

250 units $ 3.0 $ 750

Purchase 6/15

400 units $ 3.5 $ 1,400

Purchase 6/28

200 units $ 3.6 $ 720

850 units

$ 2,870

Explanation / Answer

Part-1)

Units

Beginning inventory

250

Purchase 6/15

400

Purchase 6/28

200

850

Less: Sales

525

Ending inventory

325

?

Part-2)

FIFO

Units

Cost

Value

Purchase 6/28

200

3.6

720.00

Purchase 6/15

125

3.5

437.50

1157.50

LIFO

Units

Cost

Value

Beginning inventory

250

3

750.00

Purchase 6/15

75

3.5

262.50

1012.50

Units

Beginning inventory

250

Purchase 6/15

400

Purchase 6/28

200

850

Less: Sales

525

Ending inventory

325