Answer:
Explanation:
Remaining Part of the Questions
A company had the following purchases during the current year:
January 13 Units at $123
February 23 Units at $133
May 18 Units at $143
September 15 Units at $153
November 13 Units at $163
Solution
Specific Identificationi Method of Inventory Costing
This method utlizes the specific cost of each inventory batch as at the time they came in to arrive at the costs of goods sold and the closing/ending inventory. This is different from First in First Out (FIFO) that utilizes the cost of the first set of goods that came in for COGS and the Last in First Out (LIFO) that uses the cost of the last batch of goods that came in for closing inventory and COGS determination.
Cost of Closing/Ending Inventory for the Last 54 Units
11 from January = 11 x $123= $1,353
13 from February = 13 x $133= $1,729
6 from May = 6 x $143= $858
13 from September = 13 x $153= $1,989
11 from November = 10 x $163= $1,630
Ending inventory 1353+1729+858+1989+1630= $7,559
Note: I had to complete the question for you since the first part on the monthly cost of inventory received was missing. Therefore, if the monthly costs are inputted above is not correct, kindly replace the calculations with the right monthly costs to arrive at your ending inventory. Just follow the process.
