Question

Pharoah has the following inventory data: 37 units @ $7.40 each Nov. 1 Inventory 149 units @ $8.00 each Purchase 74 units @ $7.80 each 17 Purchase 112 units@ $8.20 each Purchase 25 A physical count of merchandise inventory on November 30 reveals that there are 124 units on hand. Assuming that the specific identification method is used and that ending inventory consists of 37 units from each of the three purchases and 13 units from the November 1 inventory, cost of goods sold is O $1977. O $1972 O $1331. O$1945

Answer 1

Cost of Goods Sold under specific identification method = (37-13)*7.40 + (149-37)*8 + (74-37)*7.80 + (112-37)*8.20 = 1977. Option A is the answer