Question

A company had the following purchases during the current year: January: 19 units at $129 February: 29 units at $139 May: 24 units at $149 September: 21 units at $159 November: 19 units at $169 On December 31, there were 54 units remaining in ending inventory. These 54 units consisted of 11 from January, 13 from February, 6 from May, 13 from September, and 11 from November. Using the specific identification method, what is the cost of the ending inventory? a. $8,046. b.$7,877. c.$6,297. d.$6,239. e.$8,215.

Answer 1

Answer: A - $8,046

Explanation: Inventory valuation using the specific identification method is a method used in getting the actual stock cost at their specific purchase price at a specified time during the year.

Jan - 11 units @129 =1,419

Feb - 13 units @139 = 1,807

May - 6 units @149 = 894

Sept - 13 units @159= 2,067

Nov - 11 units @ 169= 1,859

Total = $8,046