Alpha First Company just began business and made the following four inventory purchases in June: $\begin{array}{lrlr}
\text { June } & 1 & 150 \text { units } & \$ 1,040 \
\text { June } & 10 & 200 \text { units } & 1,560 \
\text { June } & 15 & 200 \text { units } & 1,680 \
\text { June } &28 & 150 \text { units } & 1,320 \
&&&\$5,600
\end{array}$ A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand. Using the LIFO inventory method, the value of the ending inventory on June 30 is
A)$1,456
B)$1,508
C)$1,848
D)$1,824

Question

Quizplus · Accepted Answer

Under LIFO, the last items purchased are the first to be used or sold. The ending inventory of 210 units would consist of the earliest purchases: 150 units from June 1 and 60 units from June 10. The calculation is (150 units x $6.93) + (60 units x $7.80) = $1,039.50 + $468 = $1,507.50, rounded to $1,508.

Alpha First Company Just Began Business and Made the Following