Question

calculate ending inventory and cost of goods sold on augut 31, using the specific identification method.

Pete's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Pete's Tennis Shop uses a periodic inventory system. Date Units Unit Cost $147 Total cost $ 1,176 August 1 August 4 August 11 August 13 Transactions Beginning inventory Sale ($160 each Purchase Sale (5175 each) Purchase Sale ($185 1,370 August 20 1,270 August 26 August 29 each) Purchase 1,282 $ 5,103 For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory and 10 rackets from the August 20 purchase. Problem 6-2B Part 1 Required: 1. Calculate ending Inventory and cost of goods sold at August 31, using the specific identification method. Ending inventory Cost of goods sold

Answer 1

Solution:

E K 38 Computation of ending inventory and cost of goods sold under Periodic- Specific identification Cost of goods sold 39 Cost of Goods Available for sale Inventory Balance Ending Cost per (a) Specific Identification Cost of Goods No. of Cost Per Ending Cost Per Cost of No. of Units 40 Inventory Available for Sale Units sold Goods sold Inventory Cost unit unit unit Units 6 $147.00 2 $147.00 $294.00 $147.00 $1,176.00 $882.00 Beginning Inventory Purchases: 41 42 $1,096.00 $1,270.00 $137.00 8 $137.00 10 $127.00 2 $137.00 O $127.00 $274.00 $1,370.00 $1,270.00 $1,287.00 43 10 11-Aug $127.00 $117.00 $0.00 44 20-Aug 10 $1,287.00 11 $117.00 45 29-Aug 11 46 $5,103.00 24 $3,248.00 $1,855.00 Total 47 39 15 48 49 50 51 52 53 54 55 56 57 58 59 Sheet248 (11) Sheet119 (10) Sheet36 (28) Sheet27 (3) et847 Sheet850 Sheet852 Sheet853 ПI