On December 31, there were 26 units remaining in ending inventory. These 26 units consisted of 2 from January, 4 from February, 6 from May, 4 from September, and 10 from November. Using the specific identification method, what is the cost of the ending inventory

The ending inventory cost is $3,800

Explanation:

The ending inventory cost is computed as using the method or approach of specific identification:

Ending inventory cost = Units of January × Price + Units of February × Price + Units of May × Price + Units of September × Price + Units of November × Price

where

Units of January is 2 and price is $120

Units of February is 4 and Price is $130

Units of May is 6 and Price is $140

Units of September is 4 and Price is $150

Units of November is 10 and Price is $160

Putting the values above:

Ending inventory cost = 2 × $120 + 4  × $130 + 6  × $140 + 4  × $150 + 10  × $160

= $240 + $520 + $840 + $600 + $1600

Ending inventory cost =$3800

Note: Here in the questions units are missing. So, I took the units and computing the same.

January 10-  units at the rate $120

February 20- units at the rate $130

May 15- units at the rate $140

September 12 -units at the rate $150

November 10- units at the rate $160