Answer:
The ending inventory cost is $3,800
Explanation:
The ending inventory cost is computed as using the method or approach of specific identification:
Ending inventory cost = Units of January × Price + Units of February × Price + Units of May × Price + Units of September × Price + Units of November × Price
where
Units of January is 2 and price is $120
Units of February is 4 and Price is $130
Units of May is 6 and Price is $140
Units of September is 4 and Price is $150
Units of November is 10 and Price is $160
Putting the values above:
Ending inventory cost = 2 × $120 + 4 × $130 + 6 × $140 + 4 × $150 + 10 × $160
= $240 + $520 + $840 + $600 + $1600
Ending inventory cost =$3800
Note: Here in the questions units are missing. So, I took the units and computing the same.
January 10- units at the rate $120
February 20- units at the rate $130
May 15- units at the rate $140
September 12 -units at the rate $150
November 10- units at the rate $160
