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A company had the following purchases during its first year of operations:    Purchases January: 24 units at $115 February: 34 units...

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Accounting

A company had the following purchases during its first year ofoperations:
  

Purchases
January:24 units at $115
February:34 units at $126
May:29 units at $138
September:26 units at $146
November:24 units at $156


On December 31, there were 45 units remaining in ending inventory.These 45 units consisted of 6 from January, 7 from February, 11from May, 5 from September, and 16 from November. Using thespecific identification method, what is the cost of the endinginventory?

Multiple Choice

  • $5,434.

  • $5,440.

  • $6,160.

  • $6,316.

  • $6,472.

Answer & Explanation Solved by verified expert
4.3 Ratings (812 Votes)

Correct answer-----------$6,316

Working

Units available Sold Ending Units Cost per unit Ending Inventory
Purchase in January 24 18 6 $                   115.00 $                690.00
Purchase in February 34 27 7 $                   126.00 $                882.00
Purchase in May 29 18 11 $                   138.00 $            1,518.00
Purchase in September 26 21 5 $                   146.00 $                730.00
Purchase in November 24 8 16 $                   156.00 $            2,496.00
Total $            6,316.00

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