Answer:
$2,320
Explanation:
It is given that the cost of goods sold should be calculated as per specific identification method. Cost of goods sold consists of total cost of sales which includes the product of the unit and cost per unit of sales. The sale on June 7 consists of the cost of $190 as per beginning inventory. The sale on June 15 consists of the sale of 3 fishing reels from beginning inventory which costs $190 per unit and 9 fishing reels from units purchased on June 12 which, costs $180 per unit. Likewise, the sale on June 29 consists of cost of $190 and cost of $170 from the purchase of June 24. Thus, the cost of goods sold is $7,980.
It is given that the total cost is $7,980. The cost of goods sold is $5,660. Cost of ending inventory can be found by deducting cost of goods sold from the total cost. Thus, the total cost of ending inventory is $2,320.
See attached picture for further explanation.
