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On December 31, there were 28 units in ending inventory. These 28 units consisted of 2 from the January 10 purchase, 3 from the March 15 purchase, 4 from the April 25 purchase, 11 from the July 30 purchase, and 8 from the October 10 purchase. g

User Kimisha
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1 Answer

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Answer:

The cost of ending inventory is $12,360

Step-by-step explanation:

In the specific Identity method, the items are values by identifying each unit and its relevant cost.

As per the given data

28 units of Ending inventory comprised of

2 from the January 10 purchase

3 from the March 15 purchase

4 from the April 25 purchase

11 from the July 30 purchase, and

8 from the October 10 purchase

The ending Inventory will be valued as follow

Ending Inventory = ( 2 units x $360 ) + ( 3 units x $390 ) + ( 4 units x $420 ) + ( 11 units x $450 ) + ( 8 units x $480 ) = $720 + $1,170 + $1,680 + $4,950 + $3,840 = $12,360

User Taseer
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