Question

Delta Diamonds had 5 one-carat diamonds available for sale this year: 1 purchased June 1 for $500, 2 purchased July 9 for $550 each, and 2 purchased September 23 for $600 each. On December 24, it sold one of the diamonds that was purchased on July 9. Using a periodic specific identification, its Inventory after the December 24 sale is

Answer 1

Using a periodic specific identification, Delta Diamonds' Inventory after the December 24 sale is $2,250.

What is the specific identification method?

The specific identification method is an inventory method that identifies specific inventories sold and uses their specific costs in valuing the cost of goods sold.

Data and Calculations:

Date             Units       Unit Cost         Total       Balance

June 1               1               $500          $500        $500

July 9               2              $550         $1,100      $1,600

Sept. 23           2              $600        $1,200     $2,800

Dec. 24           -1              $550          $550      $2,250

Thus, using a periodic specific identification, Delta Diamonds' Inventory after the December 24 sale is $2,250.

Learn more about specific identification methods at brainly.com/question/25056275