Question

June 1 180 units $380
june 10 240 units $600
June 15 240 units $610
June 28 200 units $490
A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using LIFO inventory method, the value of the ending inventory on June 30 is

Answer 1

To value the ending inventory using the LIFO (Last In, First Out) inventory method, we need to track the most recent purchases and sales.

Given the purchases and the physical count on June 30, let's summarize what we have:

### Purchases:
1. June 1: 180 units at $380
2. June 10: 240 units at $600
3. June 15: 240 units at $610
4. June 28: 200 units at $490

### Total Units Available for Sale:
\[
180 + 240 + 240 + 200 = 860 \text{ units}
\]

### Units Sold:
Total units available is 860 units, and there are 200 units left in inventory after a physical count, which means:
\[
860 - 200 = 660 \text{ units sold}
\]

### LIFO Method:
Under LIFO, the last units purchased are the first ones sold. Therefore, we will start from the most recent purchase on June 28 and then go back to earlier purchases until we account for the 660 units sold.

1. **June 28: 200 units at $490**
- All 200 units sold.
- Remaining: 0 from this batch

2. **June 15: 240 units at $610**
- All 240 units sold.
- Remaining: 0 from this batch

3. **June 10: 240 units at $600**
- All 240 units sold.
- Remaining: 0 from this batch

4. **June 1: 180 units at $380**
- All 180 units sold.
- Remaining: 0 from this batch

At this point, we sold a total of:
\[
200 + 240 + 240 + 180 = 860 \text{ units}
\]

This accounts for all of our available inventory. Since we ended up with 200 units left on hand, these must come from the oldest layers of inventory.

### Ending Inventory Calculation:
The remaining 200 units will come from the earliest available stock.

Since we sold all available stock through June 1, there are no units left to report from that date. So the ending inventory must come from the June 1 purchase. Thus, in order to reach 200 remaining units, we will have to inventory units from the units purchased at prices of earlier batches.

The value of the ending inventory:
- **All remaining 200 units come from June 1 purchase** at $380 per unit.

Thus, the ending inventory value is:
\[
200 \text{ units} \times 380 = 76,000
\]

### Conclusion:
The value of the ending inventory on June 30 using the LIFO method is **$76,000**.