Question

Delta Diamonds uses a periodic inventory system. The company had five one-carat diamonds available for sale this year: one was purchased on June 1 for $500, two were purchased on July 9 for $600 each, and two were purchased on September 23 for $650 each. On December 24, it sold one of the diamonds that was purchased on July 9. Using the specific identification method, its ending inventory (after the December 24 sale) equals:

Answer 1

Answer:

$1150

Explanation:

The ending inventory of Delta diamond using specific identification method will be

Date                         Purchase                     Cost

June 1                     one purchase               $500

July 9                    Two purchase                $600

September 23       Three purchase            $650

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Total cost of goods available for sale       $1750

Less: Cost of goods sold                      -$600

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Ending inventory                                        $1150