Question

You are provided with the following information for Tamarisk, Inc. Tamarisk, Inc. uses the periodic system of accounting for its inventory transactions. March 1 Beginning inventory 2,075 liters at a cost of 60¢ per liter. March 3 Purchased 2,430 liters at a cost of 65¢ per liter. March 5 Sold 2,285 liters for $1.10 per liter. March 10 Purchased 3,860 liters at a cost of 72¢ per liter. March 20 Purchased 2,475 liters at a cost of 80¢ per liter. March 30 Sold 5,180 liters for $1.35 per liter. (1) Specific identification method assuming: (i) The March 5 sale consisted of 1,000 liters from the March 1 beginning inventory and 1,285 liters from the March 3 purchase; and (ii) The March 30 sale consisted of the following number of units sold from beginning inventory and each purchase: 425 liters from March 1; 565liters from March 3; 2,900 liters from March 10; 1,290 liters from March 20.

Answer 1

Cost of goods sold: Specific Identification

Date	Units	Unit cost	Amount
Beginning inventory (1,000+425)	1,425	60	85,500
March 3 (1,285+565)	1,850	65	120,250
March 10	2,900	72	208,800
March 20	1,290	80	103,200
Cost of goods sold	7,465		$517,750

Cost of ending inventory: Specific Identification

Date	Unit	Unit Cost	Amount
Beginning inventory (2,075-1,425)	650	60	39,000
March 3 (2,430-1,850)	580	65	37,700
March 10 (3,860-2,900)	960	72	69,120
March 20 (2,475-1,290)	1,185	80	94,800
Cost of ending inventory	3,375		$240,620