A company just starting business made the following four inventory purchases in June:
A physical count of inventory on June 30 reveals that there are 250 units on hand.
-Using the LIFO inventory method, the value of the ending inventory on June 30 is:
A) $2,835.
B) $1,620.
C) $2,580.
D) $1,365.

Question

A company just starting business made the following four inventory purchases in June:
  A physical count of inventory on June 30 reveals that there are 250 units on hand.
-Using the LIFO inventory method, the value of the ending inventory on June 30 is:
A) $2,835. 
B) $1,620. 
C) $2,580. 
D) $1,365.

Quizplus · Accepted Answer

Value of the ending inventory = $780 + [($1,170/200)] x 100) = $1,365.

A Company Just Starting Business Made the Following Four Inventory