Question

a company uses the periodic inventory system and had the following activity during the current monthly period.
using the weighted average inventory method, the company's ending inventory would be:

A company had the following purchases during its first year of operations 18 00:15.09 January: February: May: September: November: Purchases 10 units at $120 20 units at $130 15 units at $140 12 units at $150 10 units at $160 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? Multiple Choice

Answer 1

Cost of ending inventory using specific identification method:-

January	2 x $120 = $240
February	4 x $130 = $520
May	6 x $140 = $840
September	4 x $150 = $600
November	10 x $160 = $1,600
Ending inventory	$3,800