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A company just starting its business made the following four inventory purchases in June: Date Number...

A company just starting its business made the following four inventory purchases in June:

Date Number of Units Total Cost
Jun 1 190 $608
Jun 10 240 792
Jun 15 240 816
Jun 28 190 665


On June 25, the company made its first sale when a local customer purchased 590 units for $3,500. The company uses a perpetual inventory system.
Using the FIFO cost formula, the cost of the ending inventory on June 30 is

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Answer #1

ANSWER:

Date   Purchases   Sales   Balance
Jun-01   190 Units =$608 0   190 Units =$608
Jun-10   240 units = $792 0 430 Units = $1400
Jun-15   240 units = $816 0 670 units = $2216
Jun-25       590 units =2216/670*590=$1951.40 80 units = $195.14
Jun-28   190 units =$665       270 units = $ 860.14
So the cost of ending inventory on June 30 is $860.14

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