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25 November, 12:51

Tamarisk, Inc. just began business and made the following four inventory purchases in June: June 1 162 units $972 June 10 216 units 1512 June 15 216 units 1728 June 28 162 units 1458 $5670 A physical count of merchandise inventory on June 30 reveals that there are 216 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is

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  1. 25 November, 13:15
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    Inventory = $1,890

    Explanation:

    Giving the following information:

    Tamarisk, Inc. just began business and made the following four inventory purchases in June:

    June 1: 162 units $972

    June 10: 216 units $1512

    June 15: 216 units $1728 (1728/216=8)

    June 28: 162 units $1458 (1458/162=9)

    A physical count of merchandise inventory on June 30 reveals that there are 216 units on hand.

    FIFO (first-in, first-out)

    Inventory = 162*9 + 54*8 = $1,890
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