Question

Setion questions point cach total of 20 points pny just starting business made the following four inventory purchases in June Per Unit Cost Total Costs 150 units $ 390 200 units 598 June 15 630 June 28 150 units 510 $2.128 June June 10 200 units • Calculate per unit cost. A physical count of merchandise inventory Lun 30 reveals that there are 200 units on hand. Using the LIFO inventory method. calculate the value of the ending inventory on June 30: 5.b) A company just starting business made the following four inventory purchases in June: Per Unit Cost Total Costs June 1 150 units $ 390 June 10 200 units 598 June 15 200 units 630 June 28 150 units $2.128 * Calculate per unit cost. 510 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the FIFO inventory method, calculate the cost of goods sold for June: Page 1 of 13

Answer 1

	Unit	Unit Cost	Total Cost
June 1	150	2.6	390
June 10	200	2.99	598
June 15	200	3.15	630
June 28	150	3.40	510
Total	700		2128

5a) value of ending inventory = (150*2.6+50*2.99) = 539.50

5b) Cost of goods sold under FIFO = (390+598+150*3.15) = 1460.50