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Alpha First Company Just Began Business and Made the Following

question 78

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Alpha First Company just began business and made the following four inventory purchases in June:  June 1150 units $1,040 June 10200 units 1,560 June 15200 units 1,680 June 28150 units 1,320$5,600\begin{array}{lrlr}\text { June } & 1 & 150 \text { units } & \$ 1,040 \\\text { June } & 10 & 200 \text { units } & 1,560 \\\text { June } & 15 & 200 \text { units } & 1,680 \\\text { June } &28 & 150 \text { units } & 1,320 \\&&&\$5,600\end{array} A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand. Using the LIFO inventory method, the value of the ending inventory on June 30 is

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Definitions:

Risk Averter

An individual who prefers outcomes that are certain over those with any level of risk, usually willing to accept lower returns to avoid uncertainty.

Expected Value

A calculated average outcome of a random variable, considering all possible outcomes and their probabilities.

Natural Log

A logarithm to the base e (where e is approximately 2.71828), used extensively in mathematical, economic, and scientific applications.

Risk Averter

An individual or entity that prefers to avoid uncertainty and potential losses when making investment or financial decisions.

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