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28 February, 06:38

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

June 1 123 units $850

June 10 164 units 1280

June 15 164 units 1380

June 28 123 units 1080

$4590

A physical count of merchandise inventory (rounded to whole dollar) on June 30 reveals that there are 170 units on hand. The inventory method which results in the highest gross profit for June is

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  1. 28 February, 07:46
    0
    The inventory method which results in the highest gross profit for June is FIFO

    Explanation:

    Month Units Cost U/cost LIFO E. INVEN. I. COST

    jun-01 123 850 7 123 861 0

    jun-10 164 1280 8 47 376 936

    jun-15 164 1380 8 0 0 1312

    jun-28 123 1080 9 0 0 1107

    4590 170 1237 3355

    FIFO E. INVEN. I. COST

    7 0 0 861

    8 0 0 1312

    8 47 376 936

    9 123 1107 0

    170 1483 3109
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