A company had the following purchases during the current year: 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

$3,800

Explanation:

The computation of cost of the ending inventory is shown below:-

                                          Unit    Rate       Total  

January                                2       $120      $240  

February                              4        $130      $520  

May                                      6         $140     $840  

September                          4          $150    $600  

November                          10         $160     $1600  

Total Units                          26                     $3,800

So, by the above computation we simply multiply every unit with rate.Therefore the cost of ending inventory is $3,800

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