Question

During 2021, a company sells 160 units of inventory for $55 each. The company has the following inventory purchase transactions for 2021:

Date		Transaction	Number of Units			Unit Cost			Total Cost
Jan.	1	Beginning inventory		58		$	40			$	2,320
May	5	Purchase		107			39				4,173
Nov.	3	Purchase		75			38				2,850
				240						$	9,343

Actual sales by the company include its entire beginning inventory, 87 units of inventory from the May 5 purchase, and 15 units from the November 3 purchase.

Calculate cost of goods sold and ending inventory for 2021 assuming the company uses specific identification.

Cost of goods sold:

Ending inventory:

Answer 1

Cost of goods sold:
From beginning inventory	2320	=58*40
From May 5 purchase	3393	=87*39
From November 3 purchase	570	=15*38
Cost of goods sold	6283
Ending inventory:
From beginning inventory	0
From May 5 purchase	780	=(107-87)*39
From November 3 purchase	2280	=(75-15)*38
Ending inventory	3060