A Company Had the Following Purchases During the Current Year

question 189

Multiple Choice

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?

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

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Definitions:

Discount

A reduction applied to the regular price of goods or services, often used as a sales strategy.

Net Price

The actual price paid for a product or service after deducting any discounts, rebates, or allowances.

Real Estate Commission

A fee paid to a real estate agent or broker for facilitating the sale or lease of a property, typically a percentage of the sale price.

Net Proceeds

The amount of money received from a sale after all costs and expenses have been paid.