Question 32

Ending inventory = $65,500, and cost of goods sold = $227,000

Using the specific identification method, the ending inventory has been calculated as $65,500 and the cost of goods sold amounts to $227,000 for the year ended December 31, 2018. This method accurately reflects the actual cost of individual items sold and remaining in inventory.

A) Ending inventory = $61,000, and cost of goods sold = $231,500

This option is incorrect as the ending inventory figure of $61,000 does not correspond to the calculations made under the specific identification method. Additionally, the cost of goods sold of $231,500 is higher than what was determined, indicating a miscalculation.

B) Ending inventory = $65,500, and cost of goods sold = $227,000

This option is correct as it accurately reflects the results obtained using the specific identification method. The figures align with the actual costs associated with the inventory and sales for the year, making it the right choice.

C) Ending inventory = $68,500, and cost of goods sold = $224,000

This option is incorrect since it presents an ending inventory that exceeds the calculated amount of $65,500. The cost of goods sold of $224,000 also does not match the accurate figure, indicating a significant discrepancy.

D) Ending inventory = $65,000, and cost of goods sold = $227,500

This option is also incorrect as the ending inventory of $65,000 is below the calculated figure of $65,500, and the cost of goods sold of $227,500 is higher than the established amount. These inaccuracies render this option invalid.

Conclusion

Option B is definitively the correct answer as it accurately represents the ending inventory and cost of goods sold calculated through the specific identification method. All other options either misstate the inventory values or the cost of goods sold, demonstrating a lack of adherence to the specific identification method's calculations.