A Company Made the Following Purchases During the Year

question 149

Essay

A company made the following purchases during the year: On December 31,there were 32 units in ending inventory.These 32 units consisted of 3 from the January 10 shipment,4 from the March 15 shipment,5 from the April 25 shipment,15 from the July 30 shipment,and 5 from the October 10 shipment.Using specific identification,calculate the cost of the ending inventory.

---

Definitions:

Freight Costs

Expenses incurred by a company to transport goods from one place to another.

Purchase Price

The amount of money paid to acquire a good, service, or asset.

Materials Quantity Standard

The established amount of materials that should be used for the production of a unit of goods.

Labor Quantity Standard

The benchmark or established norm for the amount of labor input required to produce a certain amount of output, reflecting efficiency expectations.