Atom Company just began business and made the following four inventory purchases in June: $$\begin{array} { r r r r }
\text { June } & 1 & 150 \text { units } & \$ 990 \
\text { June } & 10 & 200 \text { units } & 1,344 \
\text { June } & 15 & 200 \text { units } & 1,368 \
\text { June } & 28 & 150 \text { units } & 1,062 \
& & & \$ 4,764
\end{array}$$ A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand.Using the LIFO inventory method the value of the ending inventory on June 30 is
A)$1326.
B)$1320.
C)$1404.
D)$1416.

Question

Atom Company just began business and made the following four inventory purchases in June: $$\begin{array} { r r r r } 
\text { June } & 1 & 150 \text { units } & \$ 990 \
\text { June } & 10 & 200 \text { units } & 1,344 \
\text { June } & 15 & 200 \text { units } & 1,368 \
\text { June } & 28 & 150 \text { units } & 1,062 \
& & & \$ 4,764
\end{array}$$ A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand.Using the LIFO inventory method the value of the ending inventory on June 30 is
A)$1326.
B)$1320.
C)$1404.
D)$1416.

Quizplus · Accepted Answer

Using the LIFO inventory method, the ending inventory is valued at the cost of the most recent purchases. Therefore, the ending inventory is valued at the cost of the 150 units purchased on June 28, which is $1,062.

Atom Company Just Began Business and Made the Following Four