Question

A company had the following purchases during the current year: On December 31, there were 26 units remaining in ending inventory. These 26 units consisted of 2 from January, 4 from February, 6 from May, 4 from September and 10 from November. Using the specific identification method, what is the cost of the ending inventory

Answer 1

$3,800

Step-by-step explanation:

The computation of cost of the ending inventory is shown below:-

Unit Rate Total

January 2 $120 $240

February 4 $130 $520

May 6 $140 $840

September 4 $150 $600

November 10 $160 $1600

Total Units 26 $3,800

So, by the above computation we simply multiply every unit with rate.Therefore the cost of ending inventory is $3,800