Question

On December 31, there were 56 units remaining in ending inventory. These 56 units consisted of 8 from January, 10 from February, 12 from May, 10 from September, and 16 from November. Using the specific identification method, what is the cost of the ending inventory?

Answer 1

Answer:

$1120

Explanation:

Units in ending inventory = 28 + 23+ 33 - 56 = 28 units

Inventory turnover = 22021 / 2665 = 8.26

Inventory value = 28*40 = 1120

Inventory = =22*130+24*140+26*150+24*160+30*170 = 19060