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 VALUEBeginning inventory
250 units $ 3.0 $ 750Purchase 6/15
400 units $ 3.5 $ 1,400Purchase 6/28
200 units $ 3.6 $ 720850 units
$ 2,870Explanation / 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
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