Liberty Inc has the following list of inventory Item ELF ICF

Liberty, Inc. has the following list of inventory: Item ELF ICF CKS PCC CRD Unit Cost Selling Price $7,167 $6,810 $18,302 $9,374 $27,414 $20,362 $7,244 $19,793 $11,274 $33,459 Under specific- identification, what is Liberty\'s ending inventory if ICF and CRD are not sold during the current period? OA. $34,843 O B. $40,703 O C. $51,429 O D. $34,224

Solution

Under specific identification method of inventory list of unsold inventory is always given. So in this given case , all the inventory is sold except the ICF and CRD are not sold during the period. It means ICF and CRD are ending inventory in the books. CALCULATION OF THE ENDING INVENTORY BALANCE UNDER SPECIFIC IDENTIFCATION METHOD. (For valuation of the inventory we have always take the cost price) Selling price value of the ICF = $                        6,810 Selling price value of the CRD = $                      27,414 Total value of the inventory $                      34,224 Answer = Option D = $ 34,224