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20 July, 03:51

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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  1. 20 July, 04:08
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    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
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