Over the course of a month, ABC co made 4 purchases. These are outlined in the table below. At the end of the month, ABC sold 150 units for $16 each. At the end of the month, ABC sold 150 units for $16 each. The inventory manager uses specific identification and tells you that all the units that were sold, can be identified as those that were purchased from Purchase 2. Determine the Cost of Goods Sold for this sale.

Purchases

QuantityPriceQty x PricePurchase 1100101,000Purchase 2200112,200Purchase 3100121,200Purchase 4300144,200

TOTAL700

8,600Sales

Quantity

Sale 1150

Using the above information, what is the Cost of Goods Sold using the specific identification method? Assume that the inventory balance before the first purchase was zero.

Select one:

a. $1,450

b. $1,564

c. $1,650

d. $1,850