A Company Had the Following Purchases During Its First Year

question 122

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

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Definitions:

Adhesives

Substances applied to one surface or both surfaces of two separate items that binds them together and resists their separation.

Origami

The traditional Japanese art or technique of folding paper into a variety of decorative or representational forms.

Folds

Folds are bends or creases in a material made by doubling it over itself or by compressing.

Effects

Outcomes or results that are caused by some preceding action or cause.