Question

Che Date Units Unit Cost $790 October 1 Total Cost $ 4,740 Transactions Beginning inventory Sale Purchase Sale Purchase Sale Purchase 809 October 4 October 10 October 13 October 20 October 28 October 30 4,000 810 3,240 820 6,560 $18,540 Required: 1. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase. Ending inventory Cost of goods sold

Answer 1

Solution: Ending inventory COGS 7350 11190 Working: Specific Identification Availa ble for Sale Cost of Goods Sold Ending Inventory Purchase Date Units Unit Cost Units Sold Unit Cost COGS Ending Inventory- Units Cost Per Unit Ending Inventory- Cost Activity d b*c b f g-e*b e a-b c Oct 1 Oct 10 Oct 20 Oct 30 Beginning inventory 790 800 810 790 6 790 5 790 3950 1 800 800 4000 Purchase 5 5 810 810 3240 820 Purchase 4 0 0 Purchase 820 8 23 6560 820 0 8 14 7350 11190 9