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A company had the following purchases during its first year of operations: Purchases January: 10 units at $120 February: 20 units at $130 May: 15 units at $140 September: 12 units at $150 November: 10 units at $160 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?

Respuesta :

Answer:

$3,800

Explanation:

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

2 units of January = $120

= $120 × 2

= $240

4 units of February = $130

= $130 × 4

= $520

6 units of May = $140

= $140 × 6

= $840

4 units of September = $150

= $150 × 4

= $600

10 units of November = $160

= $160 × 10

= $1,600

So, the cost of ending inventory

= $240 + $520 + $840 + $600 + $1,600

= $3,800

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