Question

A company had the following purchases during its first year of operations:
  

	Purchases
January:	23 units at $116
February:	33 units at $127
May:	28 units at $139
September:	25 units at $147
November:	23 units at $157

On December 31, there were 40 units remaining in ending inventory. These 40 units consisted of 5 from January, 6 from February, 10 from May, 4 from September, and 15 from November. Using the specific identification method, what is the cost of the ending inventory?

• $5,832.

• $4,913.

• $5,518.

• $5,675.

• $4,940.

Answer 1

Cost of ending inventory

= (5*116)+(6*127)+(10*139)+(4*147)+(15*157)

= 5675

Option D is the answer