Oct. 1 Inventory 200 units @ $12.00 6 Purchase 300 units @ $13.20 13 Purchase 100 units @ $14.40 20 Purchase 200 units @ $15.60 25 Purchase 40 units @ $16.80 Total sales 620 units A periodic inventory system is used. Using the specific identification method and assuming that 50 of the items left are from the October 13 purchase and the rest are from the October 20 purchase, the cost assigned to ending inventory is a. $3,840. b. $3,312. c. $3,372. d. $3,176. 15.At December 31, 2016, XYZ Company had a correct beginning inventory of merchandise in the amount of $12,000, correct purchases of $28,000 and a correct ending inventory of merchandise in the amount of $10,000. However, in physically counting the ending inventory, the Company made an error and overstated the ending inventory by $5,000. As a result of this error: a. Total sales are overstated by $5,000. b. Net sales is understated by $15,000. c. Expenses are understated by $5,000. d. Expenses are overstated by $15,000. 16.At December 31, 2016, XYZ Company had a correct beginning inventory of merchandise in the amount of $12,000, correct purchases of $28,000 and a correct ending inventory of merchandise in the amount of $10,000. However, in physically counting the ending inventory, the Company made an error and understated the ending inventory by $5,000.