A company's inventory records indicate the following data for the month of April: Date Activities April 1 April 7 Beginning inventory Purchase Units Acquired at Cost 750 units @ $36 = $27,000 630 units @ $40 = $25,200 Units Sold at Retail April 11 Sale April 16 Purchase 550 units @ $44 = $24,200 April 22 Sale 1,100 units @ $110 400 units @ $110 The company uses a periodic inventory system. Determine the cost assigned to ending inventory using the specific identification method. Ending inventory consists of 250 units from the April 16 purchase, 80 units from the April 7 purchase, and 100 units from beginning inventory.

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in…