A Company Had the Following Purchases During Its First Year

question 143

Multiple Choice

A company had the following purchases during its first year of operations:
$$\begin{array} { | l | l | } \hline & \text { Purchases } \\\hline \text { January: } & 10 \text { units at } \$ 120 \\\hline \text { February: } & 20 \text { units at } \$ 130 \\\hline \text { May: } & 15 \text { units at } \$ 140 \\\hline \text { September: } & 12 \text { units at } \$ 150 \\\hline \text { November: } & 10 \text { units at } \$ 160 \\\hline\end{array}$$
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?

• A) $3,500.
• B) $3,800.
• C) $3,960.
• D) $3,280.
• E) $3,640.

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Definitions:

Off-Price Retailing

A retail strategy involving selling branded goods at lower than the normal retail price typically due to overstock or discontinued lines.

Outlet Stores

Retail stores that sell products directly from manufacturers at discounted prices, often offering overstocked items, seconds, or end-of-season goods.

Discount Retailers

Retail stores that offer products at lower prices than those of competitors, typically by selling items in bulk or with minimal services.

Supercenters

Large retail establishments that combine groceries and general merchandise goods under one roof, catering to a wide range of consumer needs.