Question

Sheridan Company has the following inventory data:

Nov. 1		Inventory		25 units @ $5.00 each
8		Purchase		101 units @ $5.40 each
17		Purchase		50 units @ $5.30 each
25		Purchase		76 units @ $5.50 each

A physical count of merchandise inventory on November 30 reveals that there are 84 units on hand. Assuming that the specific identification method is used and that ending inventory consists of 25 units from each of the three purchases and 9 units from the November 1 inventory, cost of goods sold (rounded) is

Answer 1

Answer

• Cost of Goods Sold as per Specific Identification method
  = $ 903
• Working

Specific Identification	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	25	$                   5.00	$                            125.00	16 [25 – 9]	$                 5.00	$                       80.00	9	$                   5.00	$                  45.00
Purchases:
08-Nov	101	$                   5.40	$                            545.40	76 [101 – 25]	$                 5.40	$                     410.40	25	$                   5.40	$                135.00
17-Nov	50	$                   5.30	$                            265.00	25 [50 – 25]	$                 5.30	$                     132.50	25	$                   5.30	$                132.50
25-Nov	76	$                   5.50	$                            418.00	51 [76 – 25]	$                 5.50	$                     280.50	25	$                   5.50	$                137.50
TOTAL	252		$                        1,353.40	168		$                     903.40 ANSWER	84		$                450.00