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A company just starting business made the following four inventory purchases in June: Date - Number of units purchased - Total cost June 1 - 170 units - $ 350 June 10 - 190 units - 575 June 15 - 190 units - 640 June 28 - 200 units - 520Total = $2085A physical count of merchandise inventory on June 30 reveals that there are 220 units on hand. The inventory method which results in the highest gross profit for June is __________.

Respuesta :

letmeanswer

The inventory method which results in the highest gross profit for June is 501

Solution:

Given,

Number of units purchased - Total cost

June 1 - 170 units - $ 350

June 10 - 190 units - 575

June 15 - 190 units - 640

June 28 - 200 units - 520

= $350 + [($575 ÷ 190 ) × (220 − 170 )]

= 350 + ( 3.02 x 50 )

= 501