Multiple Choice Question 67 Skysong, Inc. just began business and made the follo

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Multiple Choice Question 67

Skysong, Inc. just began business and made the following four inventory purchases in June:

Multiple Choice Question 67

Skysong, Inc. just began business and made the following four inventory purchases in June:

June   1 130 units $901 June   10 180 units 1260 June   15 180 units 1368 June   28 130 units 1040 $4569
A physical count of merchandise inventory on June 30 reveals that there are 180 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory (rounded to whole dollar) for June is

$1420. $1440. $1248. $1251.

Explanation / Answer

value of 180 units in closing inventory =

value of 130 units is = $1040

value of remaining 50/180*1368 = $ 380

Total value =$ 1420

Option A is correct.

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