Walstrom Company uses a perpetual inventory system and had the following inventory transactions for June 2019....

Walstrom Company uses a perpetual inventory system and had the following inventory transactions for June 2019. June 1 Beg. Inventory 50 units @ $14 for $700, on June 4 Purchased 115 units @ $15 for $1,725, on June 5 Sold 100 units, on June 10 Purchased 75 units @ $16 for $1,200, and on June 24 Sold 50 units. Total Cost of Goods Sold Available equals $3,625. The June 30th Ending Inventory is 90 units. The June 30th ending inventory included 45 units from the June 4th purchase and 45 units from the June 10th purchase. What is the cost of ending inventory under the Specific Identification method?

A. $1,375
B. $1,350
C. $1,395
D. $1,359

Solutions

Expert Solution

Correct answer------------C. $1,395

Working

	Units available	Sold	Ending Units	Cost per unit	Ending Inventory
			0		$ -
Beginning Inventoty	50	50	0	$ 14.00	$ -
Purchase On june 4	115	70	45	$ 15.00	$ 675.00
Purchase On june 10	75	30	45	$ 16.00	$ 720.00
Total					$ 1,395.00

ekkarill92 answered 1 year ago

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