On December 31, there were 46 units remaining in ending inventory. These 46 units consisted of 6 from January, 8 from February,
10 from May, 8 from September, and 14 from November. Using the specific identification method, what is the cost of the ending inventory?
2 answers:
Answer:
$6,738
Explanation:
When a company uses the specific identification method to value inventory they must identify each item individually and assign them their purchase cost.
The inventory consists of:
- 6 units from January = 6 x $123 = $738
- 8 units from February = 8 x $133 = $1,064
- 10 units from May = 10 x $143 = $1,430
- 8 units from September = 8 x $153 = $1,224
- 14 units from November = 14 x $163 = $2,282
total inventory $6,738
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