Question

Quark Inc. just began business and made the following four inventory purchases in June: June 1 150 units $ 825 June 10 200 units 1,120 June 15 200 units 1,140 June 28 150 units 885 $3,970 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is

Answer 1

Answer:

$1,170

Explanation:

The amount allocated to ending inventory for June using FIFO inventory method is computed as;

= $885 + [($1,140 ÷ 200) × (200 - 150]

= $88 5 + ($5.7 × 50)

= $885 + $285

= $1,170