Question

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 1

Ans.	Option    4th     $1,025
	*First of all, we need to calculate the cost per unit (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 for 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 method the units that have purchased last, are released the first one and the ending inventory
	units remain from the first purchases.