Sheffield Corp. just began business and made the following four inventory purchases in June: June 1 290 units $2030 June 10 340 units 2516 June 15 200 units 1540 June 28 290 units 2291 $8377 A physical count of merchandise inventory on June 30 reveals that there are 350 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory (rounded to whole dollar) for June is $2753. $2450. $2765. $2474.

Question

Ellie Padilla

Business

16 February, 05:48

Sheffield Corp. just began business and made the following four inventory purchases in June: June 1 290 units $2030 June 10 340 units 2516 June 15 200 units 1540 June 28 290 units 2291 $8377 A physical count of merchandise inventory on June 30 reveals that there are 350 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory (rounded to whole dollar) for June is $2753. $2450. $2765. $2474.

+5

Answers (1)

Know the Answer?

Josephine Strong · Answer 1

The amount allocated to ending inventory for June is $2,753

Explanation:

The FIFO is a method used to account value for inventory. Under the method, the first item of inventory purchased is the first one sold.

A physical count of merchandise inventory on June 30 reveals that there are 350 units on hand.

Following the FIFO, 350 units on hand include:

290 units were purchased on June 28: $2,291

60 units were purchased on June 15: $1,540/200 x 60 = $462

The amount allocated to ending inventory = $2,291 + $462 = $2,753