Kate is leasing some equipment from Ajax Leasing for a period of one year. Ajax pays the maintenance, taxes, and insurance costs
1 answer:
You might be interested in
Answer:
$2275
Explanation:
Given: Detail of inventory purchase-
June 1 195 units at $1170
June 10 260 units at $1820
June 15 260 units at $2080
June 28 195 units at $1755
Total purchase= $6825.
Ending Inventory on June 30 are 260 units
Now, computing amount allocated to ending inventory for June by using FIFO inventory method.
First allocating inventory June 28 purchase as it is a latest entry in the books and we are using FIFO method.
∴ Inventory allocated on June 28= 195 units at the total cost of
Next, allocating remaining inventory from June 15 purchase.
⇒ Remaining units=
∴ Remaining units to be allocated is 65 units
Cost of each unit from the purchase of June 15.
Cost of each unit=
∴ Cost of each unit for allocating remaining units=
Hence, Cost of allocating remianing 65 units=
Total amount allocated to ending inventory=
∴ Total amount allocated to ending inventory= $2275
Hence, the amount allocated to ending inventory for June is $2275.