A Company Had the Following Purchases During the Current Year

question 64

Multiple Choice

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

Ammonia

A compound of nitrogen and hydrogen with the formula NH3, characterized by its pungent smell and used as a fertilizer and cleaning agent.

2-Phenylethylamine

An organic compound with the formula C8H11N, characterized by a phenyl group attached to an ethylamine.

Toluene

A mono-substituted benzene derivative, where a methyl group replaces one hydrogen atom, used widely as an industrial solvent.

Synthesis

The process of combining different entities to form a new, complex product, often used in the context of chemical synthesis.