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A company had the following purchases during the current year: January: 30 units at $125 February: 40 units at $135 May: 35 units at $145 September: 32 units at $155 November: 30 units at $165 On December 31, there were 76 units remaining in ending inventory. These 76 units consisted of 12 from January, 14 from February, 16 from May, 14 from September and 20 from November. Using the specific identification method, what is the cost of the ending inventory? $10,880 $11,180 $10,260 $11,020 $11,780
Why might managers seeking a monthly bonus on attaining a target operating income prefer the sales method of accounting for byproducts rather than the production method?
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