Answer:
$1824
Explanation:
Given: Inventory purchases in June:
June 1 150 units $1,040
June 10 200 units $1,560
June 15 200 units $1,680
June 28 150 units $1,320
$ 5,600
Ending inventory is 210 units.
Now, using LIFO inventory method for finding the value of the ending inventory.
The LIFO inventory method assumes that the cost of the latest units purchased are the first to be allocated to cost of goods sold.
Let´s first include inventory from recent purchased price.
⇒ Value of inventory for 150 units= $1320
Hence value of 150 units of inventory is $1320
Now, finding the value of remaining inventory.
Remaining inventory= [tex]210 - 150= 60 \ units[/tex]
Taking the value of inventory from the second latest purchase units, June 15.
⇒ Value of each inventory= [tex]60\ units\times \frac{1680}{200} = \$ 504[/tex]
Next, calculating total value of ending inventory.
Total value of ending inventory= [tex]\$ 1320 + \$ 504[/tex]= [tex]\$ 1824[/tex]
Hence, The value of the ending inventory on June 30 is $1824
