Help Save & Exit Sub A company had the following purchases during its first year

Question

Help Save & Exit Sub A company had the following purchases during its first year of operations 10 unita at $120 February: 20 units at $130 15 units at s140 Septembers 12 units at $150 Novenber: 10 units at $160 JanuarY May On December 31, there were 26 unts remaining in ending inventory. These 26 units consisted of 2 from January,4 from February 6 from May. 4 from Septembet and 10 from November. Using the specific identification method, what is the cost of the ending Mutiple Choice $3.960 s3500 2 3

Explanation / Answer

All options have not been provided in the question. I am answering as per the calculations derived

  Under the specific identification method of valuation of inventory, ending inventory is valued by identifying specific items from specific dates of purchases

So, Value of ending inventory in the present case

= 2 units @$120 from January purchases + 4 units @$130 from February purchases + 6 units @$140 from May purchases + 4 units @ $150 from September purchases + 10 units @ $160 from November purchases

= 2 x $120 + 4 x $130 + 6 x $140 + 4 x $150 + 10 x $160

= $3,800

Please check the options in the question as this option has not been provided

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