If a business using the specific identification method of inventory has two items on hand at $300 each and purchases four items at $400 each, what is the value of inventory if two of the $300 items are sold

Question

Business

Bronson Peck

10 April, 09:34

If a business using the specific identification method of inventory has two items on hand at $300 each and purchases four items at $400 each, what is the value of inventory if two of the $300 items are sold

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Answers (1)

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Nikolas Peters · Answer 1

The value of inventory is $1600.

Explanation:

The business has two inventory on hand that cost $300 each so total value of inventory = 2 * 300 = $600

The value of four items at $400 each = 4 * 400 = $1600

Total number of items = 2 + 4 = 6

Total value of 6 items = 600 + 1600 = $2200

The value of sold inventory = 2 * 300 = $600

The value of inventory = total value of inventory - The value of sold inventory

The value of inventory = $2200 - $600

The value of inventory = $1600